Performance Appraisal Instruments
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Performance Appraisal Instruments
Organizations normally conduct performance appraisals using various tools and methods. These methods apply differently depending on the situation presented. One must ensure to pick the most relevant appraisal instrument to achieve the desired outcomes. Management by Objectives (MBO) is one of the Performance Appraisal Instruments that is commonly used in most organizations (Islami, Mulolli, & Mustafa, 2018). This paper will discuss various aspects of the tool including the rationale for using its, its pros and cons, and the implementation process.
Management by Objectives (MBO)
MBO is an effective strategy used in management to improve the performance of an organization by setting clear goals to focus on during a specific appraisal period (Synnott 2018). Both managers and employees come together to identify these objectives, plan and organize how to achieve them, and communicate the information to all relevant stakeholders. They then set milestones that are assessed periodically to monitor the progress of the set objectives and see if they can be achieved (Synnott 2018). This approach is preferable because it separates employees’ personalities from work objectives by judging them in terms of work performance. It is more practical because it uses measurable indicators to measure milestones and give overall projections in terms of achieving organizational goals or completing a project (Farnaz Arefian, 2018).
Advantages and Disadvantages of MBO
Among the advantages conferred by MBO, it enables employees to appreciate their on-the-job roles and responsibilities. It also enables employees to understand what is expected of them and embrace proper teamwork and communication to achieve them (Farnaz Arefian, 2018). However, MBO is associated with the limitation of overemphasizing specific goals and targets while pressuring employees to accomplish them (Islami, Mulolli, & Mustafa, 2018). Furthermore, the approach does not adequately focus on the context in which the goals are set, such as resource availability and efficiency to relative buy-in from the leadership and stakeholders (Farnaz Arefian, 2018).
MBO Appraisal Process
The ADDIE model (analyze, design, develop, implement, and evaluate) is used to help in developing guidelines used by training developers to enable proper training and performance (Islami, Mulolli, & Mustafa, 2018). As such, the ADDIE model can be used to construct MBO for appraisal purposes. Analysis can involve a broad overview of the organizational goals by checking the mission and vision and identifying areas of development. In the design and develop steps, an organization will synchronize the findings from the first step to develop specific objectives to be achieved within a given period (Islami, Mulolli, & Mustafa, 2018). The objectives should be SMART (specific, measurable, acceptable, realistic, and time-bound). The planning must consider the objective division of roles and ensure that resources needed for success are availed.
The implementation step involves the stimulation of employees’ participation in setting their own objectives and taking action to achieve them (Synnott 2018). The last step of evaluation entails monitoring the employees’ progress by using the measurable indicator to determine if adjustments are necessary (Islami, Mulolli, & Mustafa, 2018). Also, managers and employees can evaluate the reward of the progress via objective feedback to ensure motivation.
Organizations should conduct regular performance appraisals to ensure they are on the right track in terms of achieving their goals. Management by objectives is one of the effective appraisal approaches organizations can employ to evaluate performance. It has both advantages for an organization to address and limitations to address. An organization must follow the proper steps while implementing this approach to ensure success.
References
Islami, X., Mulolli, E., & Mustafa, N. (2018). Using Management by Objectives as a performance appraisal tool for employee satisfaction. Future Business Journal, 4(1), 94-108. https://doi.org/10.1016/j.fbj.2018.01.001
Farnaz Arefian F. (2018). Organising post-disaster reconstruction processes: housing reconstruction after the bam earthquake. Springer. Retrieved September 20 2022 from https://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=1711526.
Synnott K. (2018). Management by objectives an overview. SSRN. https://doi.org/10.2139/ssrn.3053038