Appraisal evaluation methods Handout.docx - Modern Methods 1 Management by Objectives(MBO Most of the traditional methods of performance appraisal are

Appraisal evaluation methods Handout.docx - Modern Methods...

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Modern Methods: 1. Management by Objectives (MBO): Most of the traditional methods of performance appraisal are subject to the antagonistic judgments of the raters. It was to overcome this problem; Peter F. Drucker propounded a new concept, namely, management by objectives (MBO) way back in 1954 in his book. The Practice of management. The concept of MBO as was conceived by Drucker, can be described as a “process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individual’s major areas of responsibility in terms of results expected of him and use these measures as guides for operating the unit and assessing the contribution of each its members”. In other words, stripped to its essentials, MBO requires the manager to goals with each employee and then periodically discuss his or her progress toward these goals. In fact, MBO is not only a method of performance evaluation. It is viewed by the Practicing managers as a philosophy of managerial practice because it is a method by wh.ch managers and subordinates plan, organise, communicate, control and debate. An MBO programme consists of four main steps: goal setting, performance standard, comparison, and periodic 1
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review. In goal-setting, goals are set which each individual, s to attain. The superior and subordinate jointly establish these goals. The goals refer to the desired outcome to be achieved by each individual employee. In performance standards, the standards are set for the employees as per the previously arranged time period. When the employees start performing their jobs, they come to know what is to be done, what has been done, and what remains to be done.
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