PERFORMANCE APPRAISAL &

MANAGEMENT BY OBJECTIVE

SACHIN : 49
EVAN : 32
AMOL : 52
NITIN : 46
PERFORMANCE
APPRAISAL
INTRODUCTION

 Performance appraisal is the assessment of individual's

performance in a systematic way.

 Parent evaluate their children, teachers evaluate their

students, and employers evaluate their employee.

DEFINITION
 According to Flippo, “Performance appraisal is
the systematic , periodic and an impartial rating
of an employee excellence in matters pertaining
to his present job and his potential for a better
job
OBJECTIVE
 Salary increase

 Promotions

 Training and Development

 Feedback

 Pressure on employee

 Evaluation of HR Programs

 Improve communication
TECHNIQUES / METHODS OF
PERFORMANCE APPRAISAL

A) Past Oriented Methods

i) Ranking methods

ii) Checklist method

iii) Forced –choice method

iv) Forced Distribution method

v) Essay & Grading method

TECHNIQUES / METHODS OF
PERFORMANCE APPRAISAL

B) Future Oriented Methods

i ) 360⁰ Appraisal / Feedback

ii) Assessment Centers

iii ) MBO
PROCESS
Setting Performance
Standards

Communicating
Taking Actions
Standards

Discuss Results Measuring Standards

Comparing with
standards
MANAGEMENT BY OBJECTIVE
INTRODUCTION- MBO
Management by Objectives was introduced by Peter
Drucker in the 1950s and written about in his 1954
book, “The Practice of Management. “

PETER F DRUCKER
MEANING
 Management by objectives (MBO) is a systematic and
organized approach that allows management to focus on
achievable goals and to attain the best possible results from
available resources.
 PRINCIPLES OF MBO

 Organizational goals and objectives

 Specific objectives for each member

 Participative decision making

 Explicit time period

 Performance evaluation
GOALS ARE SMART- MBO
Management by Objectives is a management strategy that
uses the S.M.A.R.T.

 S for Specific
 M for Measurable
 A for Achievable
 R for Realistic
 T for Time-based
PROCESS OF MBO
ADVANTAGES-MBO

 Improves employee motivation

 Improves communication

 Improves overall performance and efficiency

 Highlights training needs required to achieve objectives

DISADVANTAGE/LIMITATIONS-MBO

 Goal-setting Problems

 Time Consuming

 Increased Paperwork

 Participation Problem
WHERE WE CAN USE MBO

 MBO could be suitable for a medium to large business,

using a democratic approach to management and
operating in a stable market

 When staff is competent

CASE STUDY
Xerox Corporation
TYPE : PUBLIC -USA

INDUSTRY : DOCUMENT SERVICES

: DIGITAL IMAGING
: COMPUTER PARTS

PRODUCTS : PRINTERS
: COPIERS
: SCANNERS
: FAXES

EMPLOYEES : 130,000(2010)
 OU
K Y
A N
TH