Management by Objective (MBO) – Evaluate and Measure Performance.

Management by Objective (MBO) ensures objectives are jointly set for the organisation, the departments and each employee. A growing number of companies are moving to a performance management strategy continuously and are focusing on individual and cross-organisational development.

Performance management can improve employee engagement and thus support employees becoming more productive, develop new skills and actively participate in advancing organisational goals. 

In addition, an effective performance management strategy can also support in improving processes, systems and procedures for greater efficiency and growth. In order to measure the objectives of employees, there are some management by objective methods to consider: 

1. Critical Incident Method (CIT)

The critical incident method (CIT) places performance in context and illustrates how the employee views their choices. The manager can assess positive or negative performance.

2. Checklist Method

This method consists of a series of statements to which the answer is “yes” or “no” regarding the employee’s behaviour and performance. Examples of statements are: The employee is punctual. The employee is reliable. The employee performs tasks correctly.

3. 360-Degree Feedback

Feedback about the employee’s performance is gathered from supervisors and peers. The feedback focuses on the employee’s development, work-related behaviour and impact on the business.

4. Competencies

In addition to measuring performance by outcomes, specific tasks, or work-related behaviours, this method focuses on performance evaluation by specific competencies.

5. Graphic Rating Scale (GRS)

GRS lists several factors, including behaviours and characteristics, to rate employees according to gradations (e.g., unsatisfactory, satisfactory, excellent). 

Successful performance management depends on the commitment and involvement of all parties involved in the Performance Management cycle. It is important to track what your Performance Management strategy is delivering and choose one method to measure objectives or compile a bundle of these methods in your Performance Management cycle. 

Read more in our article: HR guide to developing a Performance Management Strategy



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