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Management by Objectives

Organizations use performance appraisal systems to evaluate their staff, activities and also to ascertain if the company is plying the right path. When properly executed, performance appraisals may be vital in hiring staff, organize crucial training endeavors so as to develop current employees by imparting necessary knowledge. Moreover, studies have established that they offer valuable data to aid pay increases or termination and thus crucial in determining an employee’s developmental needs (Armstrong, 2014). Psychologists have ascertained that when appraisal is conducted in the right manner it may boost an employee’s self-esteem and necessitate motivation (Goel, 2012). This is because employees tend to perform well if they are aware of how their supervisors view them and their contributions towards achievement of organizational goals. A proper appraisal should start with constructive dialogue between an employee and supervisor whom he or she directly report to, co-workers are also crucial in the dialogue because most work activities require combined effort.

Management by objectives is a formal performance appraisal recommended for most employers if they want to ensure that their employees align with the goals and objectives of an organization. Specifically, it is an objective based appraisal system where managers and employees agree through constructive dialogue on specific and attainable goals whose achievements are governed by strict deadlines. This technique is recommended to employers who have not commissioned performance appraisal systems because it provides a pathway to aid the identification of goals and objectives to make it easy to achieve. The system effectively identifies goals to be achieved and then proactively plan on how they can be achieved; goals are measurable thus making it easy to assess individual efforts towards achieving of objectives set. Implementing this system will ensure that an organization gains more efficiency thereby increasing productivity and profits both in the short and long run.

References

Armstrong, M. (2014). Armstrong’s handbook of management: An evidence-based guide to

            delivering high performance. London: Kogan Page.

Goel, D. (2012). Performance appraisal and compensation management: A modern approach.

            New Dehli: PHI learning.


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