What does MBO Mean | What is MBO Process?

 

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Management by Objective- MBO (Individual Performance Appraisal “HR Perspective”)

Appraisal by result, target coaching, work planning and review, performance objective setting, and mutual goal setting.

There are various methods to evaluate the employee’s performance, and all these have its advantage and disadvantage.  One of them is MBO method which bring together superior and employee together to sit and set the objective and performance standard which required at organization. It also talk about continual discussion about periodic employee’s performance. Management by Objective (MBO) specifies the performance goal that an individual and Manager identify together. Each manager sets objectives derived from overall goals and objectives of the organizations.

Categories scaling method, in this method employee’s performance are checked with their supervisor and based of supervisor feedback employee’s performance are categories into Categories (A, B, C)

Scale: (A –Good) (B-Average) (C-Poor)

If we talk about behavioral method, Managers grade the employee on the basis of his/ her work behaviors: how often employees take the interest in work, timely responding, how he/she behaves in particular situations, their behaviors with colleges and superiors. Initiative taken by them and many more etc.

Comparing method: employees are compared with each other on the basis of their job performance. This comparisons are made for same Job role employees. For example we can compare job performance of one sales executive with another sales executive and not with an administrative exective.  An administrative employee’s performance can be compare with an administrative employee.

Narrative Method: Manager make a note about employee’s action during critical incident, how he managed the work and took the initiative and preventive action. 

360 Degree feedback:  there are in some cases 360 degree performance feedbacks are uses to evaluate employee’s performance. It is not easy process to evaluate employee’s performance. This process take the time to collect the performance data from various departments from where employee’s work relates.  

Graphic rating scale method: In this method employee’s performance are rated on five scale (1, 2, 3, 4&5) and these scales are presented in percentage. 1 represent 10%, 2- 40%, 3-60%, 4-80% and 5-100%)

Scale

        5 - Outstanding Performance

4 – Exceed the Expectation

3 – Meet the Expectation

2 – Below Expectation

1 – Unsatisfactory

Management by Objective (MBO) specifies the performance goal that an individual and Manager identify together. Each manager sets objectives derived from overall goals and objectives of the organizations.

MBO are also know by various names: - Appraisal by result, target coaching, work planning and review, performance objective setting, and mutual goal setting.

Job Review and Agreement: This method is slightly different from other method mentioned above. Employee and his superior sit together and review the job description and prepare final job description which match with organizational mission & vision and both agreed on.

Development of Performance standard: After finalizing and both party consent of job description. Employee and supervisor develop specific standards of performance and determined a satisfactory level of performance that is specific and measurable.

Setting of Objective: Together employee and supervisor establish objective that realistic attainable.

Continuing Performance Discussion: The employee and supervisor use the objective as bases for continuing discussion about the employee’s performance.

Munna Singh

Author- Reprograming  of  Mind