MBO (Management by Objectives)

MBO Performance Appraisal System

MBO performance appraisal system

Under the management by objectives appraisal system, employees are evaluated based on results. The employees and the managers together plan, recognize, organize, and communicate objectives that will be focused during a particular appraisal period. The managerial activities are organized in a systematic process that is continuously directed towards efficient and effective achievement of individual and organizational objectives (Idowu, 2017). The six steps of management by objectives include: (1) Defining of organizational goals-This entails appropriately managing different kind of goals. The management should have goals expressed in measurable and specific terms. (2) Defining employee objectives- At this stage, the manager sets their objectives and asks the employees what goals they believe they can accomplish within a specified period and the resources required. (3) Continuous monitoring of progress and performance- Monitoring performance and progress enables the manager to check the ineffective and less effective programs through comparing performance (Islami, Mulolli and Mustafa, 2018). (4) Performance evaluation-Under this stage, performance review is done by the concerned managers. (5) Offering feedback- This entails continuously giving feedback on the achievement of goals and performance to allow individuals to correct and monitor their actions. (6) Performance appraisal- This is the last stage of the MBO process, which entails reviewing employee performance.

Areas where there are problems in implementing an MBO system.

In workplaces, where the top management fails to support the MBO system. When there lacks full support from the top management, it is challenging to implement the MBO system. Another instance is where the subordinates have a resentful attitude towards the implementation of the MBO system. For example, when the goals of one department are dependent on the goals of another, it isn’t easy to maintain cohesion and achievement of goals. Another area is where managers lack skills, training, and adequate knowledge. Most managers lack adequate knowledge, skills, and training need in the implementation of MBO. Therefore, they sit with the subordinates and dictate the targets and goals with no input allowed from the subordinates but demand their goals to be achieved within a specific time.

Possible Solution

Some of the possible solutions include adequate training, full support from the management, and improved communication between the subordinates and managers. The implementers need to be well trained to involve all the levels of management and gain more support. Proper training is essential while implementing the program. Improved communication between the subordinates and management will facilitate interaction and modification of the process to fit both parties (Black, Gardner, Pierce and Steers, 2019). The superiors need to get in touch with the subordinates at the appropriate time since they are a motivating force for proper implementation of MBO.

References

Black, S., Gardner, D. G., Pierce, J. L., & Steers, R. (2019). Techniques of Performance Appraisal. Organizational Behavior.

Idowu, A. (2017). Effectiveness of performance appraisal system and its effect on employee motivation. Nile Journal of Business and Economics, 3(5), 15-39.

Islami, X., Mulolli, E., & Mustafa, N. (2018). Using Management by Objectives as a performance appraisal tool for employee satisfaction. Future Business Journal, 4(1), 94-108.