Evaluating the Potential Impact of Management by Objectives (MBO)
Added on 2019-09-25
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Running head: MBO (management by objective)PERFORMANCEAPPRAISAL METHODMBO (management by objective)
MBO (management by objective)1Introduction In the following paper, we will be discussing the method of the performance appraisal that is used forthe measuring the employee's performance in an organization. The method that has been taken for theevaluation of the performance of employees is one of the modern methods named as MBO(management by objective) which is used for evaluation and is more useful for the managerialpositions. This is one of the best methods to compare the potential performance with actualperformance. This concept was yielded by the Peter F. Drucker in the year 1954. Body The method that has been taken for the evaluation of the performance of employees is one of themodern methods named as MBO (management by objective) which is used for evaluation and is moreuseful for the managerial positions as this method of the performance appraisal have overcome thetraditional problems that have been suffered in evaluating, the problem is being subject to theincompatible decision of the raters. The concept of MBO (management by objective) was yielded bythe Peter F. Drucker in the year 1954. The concept of MBO can be marked as the practice where theboth subordinate and the supervisors of an organization mutually recognizes the collective goal anduse to outline every single individual's key area of the responsibilities that will result in theachievement of their goal and the result will be measured using the technique named as MBO(management by objective) which will help in the direction of its operational unit and for evaluatingthe contribution of each of its employees. In other words, we can say that the MBO is being requiredby the managers for each employee to set their goals individually in respective of their key areas andthen from time to time use to discuss his or her advancement towards their goals that were being made(Aksoy, E.,2014)The MBO is not only the method of performance appraisal by it is also beheld by the practicingmanagers and the subordinates and it is also used as a view point of the managerial practice as this
MBO (management by objective)2method is used for making the goals of each employees as per their major key areas and this methodby which supervisors and the subordinates used to design, consolidate, communicate, regulate andexamine according to both of them.( Negoiţă, D. O.,2017)A programme of MBO has four major procedure to follow:Goal setting Standard of the performancesComparison of the standards Periodic review In the first step, the goals are being set that each employee can attain and the goals are being madecollectively by the both subordinate, and the supervisors of an organization and this setting of the goalrefer to the goal of an individual that each employee will be going to achieve. In the performance standard, the standard that is being set by the both of them for the subordinate.When the employees are doing the work to achieve the goal this step will help them in measuring theirperformance as what they have being done or what is being left that is to be done to achieve theobjective. (2017)In the third step i.e. to compare the potential output with the actual output or the standard that is beingmade by the them for the achievement of their goal as this comparison will help in the achievement oftheir goal by the gap analysis by seeing where he employee lacks due to which he is not able toachieve the objective.In the last step of the periodic review, the corrective measure is being taken if there is any deviationbetween the potential output in comparison to its actual output or the standard output. This is a kind ofintervallic progress review that has been directed in a productive rather than a disciplinary manner.(2017)Example of performance appraisal format of MBO (management by objective) is shown below:
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