Performance Evaluation Strategy: The Ultimate Guide for Managers on Employee Performance Appraisal

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 giving full authority to subordinates and fostering a democratic atmosphere can this be realized. Its fundamental nature is to engage in "participative management." MBO uses 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 provides feedback on current tasks, informing employees about the purpose of their work goals, the current progress, and how to achieve the goals, thereby assisting them in making necessary adjustments. Generally, MBO is more commonly used by employees in professional or managerial positions. Implementing "MBO" can effectively combine the strengths of managers and employees, enabling them to work together to achieve organizational goals. Additionally, it regularly evaluates employee performance based on goal completion. Since MBO can effectively align individual employee goals with organizational goals, it not only improves the organization's performance evaluation system but 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