MANAGEMENT BY OBJECTIVES

Appraisals Home Management By Objectives The concept of Management by Objectives (MBO) was first given byPeter Drucker in 1954. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.

THE MBO PROCESS

UNIQUE FEATURES AND ADVANTAGES OF MBO

Performance Appraisal

Appraisals Home Performance Appraisal Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. According to Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart ofpersonnel management and reflects the management's interest in the progress of the employees.

Objectives Of Performance appraisal:

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To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between superior subordinates and management employees.

To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.

To provide feedback to the employees regarding their past performance.

Provide information to assist in the other personal decisions in the organization.

Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.

To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.

To reduce the grievances of the employees.

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Every organization needs Performance Appraisals. No matter what type of business or group you are in, having a performance appraisal system is a good idea. Even if you only have one employee, formally reviewing your staff on a regular basis could keep you out of court. With an appraisal system in place, you will: - have written records of your employees' performance; - get more productivity from workers thru goal-setting; - have an objective means of determining compensation. Even if you already have an informal review at raise time, it isn't too late to start a new program now and begin capturing everything in writing.

Creating performance appraisal forms can be a hassle. If you have ever had to create an employee performance appraisal form before, you know how time consuming it can be. Even if you were a Human Resources guru, it would likely take you 30 hours to research and write a comprehensive performance appraisal form. To pay a consultant to do this for you would cost thousands of dollars. Even web-based software packages are expensive (some for thousands of dollars) and are difficult to use because they require you to learn special software. We created our Performance Appraisal Forms to avoid these hassles, and give you lots of options for choosing the employee performance evaluation form that is right for you. Plus, all of our forms work with any popular word processor, so that customizing and printing is as easy as possible.

Our Performance Appraisal Forms are thorough. We know that different organizations have different appraisal form needs, so we created TEN different sets - including forms for 360-degree performance appraisals, project specific reviews and employee self-evaluations. You can use any of the forms we provide as is, edit each one individually or cut and paste your favorite aspects of multiple forms into your own creation.

Our Ten Performance Appraisal Forms include: 1. General Performance Appraisal Form I Six-page form includes evaluation sections for three categories: a) objectives from last review period; b) current job duties (which are customizable), and c) organization core values (e.g., maturity, vision). 2. General Performance Appraisal Form II Four-page form has three sections: a) overall performance, b) communication skills, and c) people/self development skills. 3. General Performance Appraisal Form III Two-page "short form" has numerical rankings for two sections: a) general work attributes and b) managerial attributes. Includes a weighted average calculation. 4. 360-Degree Performance Appraisal Form I Two-page form for peers, outside suppliers and customers to fill out. Also can be used for "upwards" feedback about managers. 5. 360-Degree Performance Appraisal Form II Two-page form for peers and outsiders - all open-ended questions, without numerical rankings. 6. Manager Performance Appraisal Form Six-page form with all sections related to managerial skills. Also includes a section for listing future objectives. 7. Administrative/Technical Performance Appraisal Form Four-page form perfect for administrative, technical and customer service workers. 8. Sales Performance Appraisal Form Five-page form focused on sales personnel. Includes four sections: a) actual vs. plan performance, b) lead generation, c) selling skills and d) account maintenance. 9. Project Evaluation Review Form Four-page form geared towards specific projects, and an individuals' role on a given project. 10. Employee Self-Assessment Form Two-page open-ended form for an employee to fill-out before his or her own review. Sections include: a) success in meeting goals from last review, b) accomplishments and c) areas for improvement.