Performance Evaluation Strategy - The Ultimate Guide for Managers on Employee Performance Evaluation

Author: Zheng Yingchuan
Publisher:
Publish Date: 2006-07-01
Features: Management By Objectives (MBO), a term coined by management guru Peter Drucker in his book The Practice of Management in 1954, has been in use for over half a century. The essence of MBO is grounded in teamwork and oriented toward performance improvement. To achieve upward goals, all employees must contribute their ideas and efforts. Therefore, only by granting sufficient authority to supervisors and fostering a democratic participatory atmosphere can this be realized. Fundamentally, MBO is a form of "participative management," using goal setting as a means and problem-solving and task completion as its purpose. It is also a method of formulating work objectives and action plans, followed by effective management based on these goals. It primarily serves to provide feedback on current tasks, informing employees about the purpose of their goals, their current progress, and how to achieve them, thereby assisting them in making necessary adjustments. Generally, MBO is more commonly used by employees in professional or managerial roles. Implementing "MBO" can effectively combine the strengths of managers and employees, enabling them to work together to achieve organizational goals, and regularly assess employee performance based on goal completion. Since MBO can effectively align individual employee goals with organizational goals, in addition to improving the organizational performance evaluation system, it also achieves the effects of motivation and talent development for employees. As a result, in the United States, the implementation rate of MBO is approximately 40%. P68