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correlation to their companys success. Therefore, the objectives identified in a managers MBO
appraisal typically reflect department goals that will substantially affect the organization.
Collaboration
In employee evaluation methods such as narrative performance appraisals, graphic rating scales,
and peer evaluations, the supervisor or manager provides insight on goals the leader wants
employees to attain throughout the evaluation year. By contrast, MBO appraisals are constructed
with equal input from both the manager and the person who supervises the manager, such as an
executive employee or a director. Theres greater collaboration in constructing MBO goals than
there is in identifying goals for a production worker or for administrative support personnel.
MBO goals usually meet the standards of well-constructed goals according to the SMART
principles: specific, measurable, attainable, relevant and time-specific.
Timing
MBO appraisals differ significantly from other types of appraisal methods concerning milestones
and timing. There generally are two types of time-specific MBO goals: annual goals and
intermediate goals. When a manager and director discuss the manager's MBO goals, they define
all of the company's available resources and the time it will take the manager to attain each goal.
For example, if a managers goal is to reduce legal expenses for employment claims by 10
percent annually, the resources available might be employee relations specialists in the HR
department who are qualified to respond to employee claims instead of immediately sending
claims to the companys lawyer. The first-quarter measurement of the MBO appraisal would,
therefore, assess whether there have been any claims, and which claims have been handled by
employee relations specialists instead of lawyers. At the end of the year, the total number of
claims and legal expenses factor into the managers annual performance according to MBO
measurements.
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1. Essay Method
3. Rating Scale
Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages Raters biases
4. Checklist method
5.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
group.
Advantages of Ranking Method
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
The whole man is compared with another
whole man in this method. In practice, it is very difficult
to compare individuals possessing various individual
traits.
This method speaks only of the position where an