...Management by objective (MBO) Management by Objective is a tool that allows managers and employees to come together for the purpose of agreeing upon a set of objectives to achieve the company’s short, medium, or long term future (www.word.com/defination/mangement). The theory intrigued me because management by objective theories can help promote a great team. The overall well-being of the company works better with healthy communication between management and employee’s. I currently manage people clarifying their goals and stimulating theory can be a challenge. Management by objective is an essential part of the mangers daily activities. The Theory for management by objective is to improve planning, better understanding between management and employee, participation in the goal setting process, better informed employees, improved appraisal system and better organization of functional task grouping (Ford, McLaughlin, Nixdorf o 1980). The concept of job planning is a key theory of management by objective because it sets a range of performance systems to assist the employees to stay on track (www.1000ventures.com). When you plan you give your employees an expected result from beginning to end. Better understanding between you and your employees is important because if your employee does not understand what is needed from them they cannot possible meet the company’s needs. If the communication is unclear there is room for error Communication is an essential part...
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...Management By Objectives (MBO) - Peter Drucker MBO Post : Gaurav Akrani Date : 6/12/2010 01:23:00 PM IST No Comments Lables : Education, Management, Study Notes The Concept Of Management By Objectives (MBO) The concept of MBO is closely connected with the concept of planning. The process of planning implies the existence of objectives and is used as a tool/technique for achieving the objectives. Modern managements are rightly described as 'Management by Objectives' (MBO). This MBO concept was popularized by Peter Drucker. It suggests that objectives should not be imposed on subordinates but should be decided collectively by a concerned with the management. This gives popular support to them and the achievement of such objectives becomes easy and quick. Management by Objectives (MBO) is the most widely accepted philosophy of management today. It is a demanding and rewarding style of management. It concentrates attention on the accomplishment of objectives through participation of all concerned persons, i.e., through team spirit. MBO is based on the assumption that people perform better when they know what is expected of them and can relate their personal goals to organizational objectives. Superior subordinate participation, joint goal setting and support and encouragement from superior to subordinates are the basic features of MBO. It is a result-oriented philosophy and offers many advantages such as employee motivation, high morale, effective and purposeful leadership...
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...rP os t W15151 PERFORMANCE MANAGEMENT SYSTEM AT ATTOCK REFINERY LIMITED op yo Dr. Sadia Nadeem and Ruhma Islam wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2015, Richard Ivey School of Business Foundation Version: 2015-05-05 In today’s highly competitive and performance driven business climate, both globally and locally, we cannot afford to rest on our laurels. Our highly professional and dedicated human resources [team] works in a culture supportive of openness, fairness, meritocracy, team knowledge sharing and innovation in the relentless pursuit of continual improvement and achieving excellence. — M. Adil Khattak, chief executive officer, Attock Refinery Limited tC After attending the management committee meeting in November 2013 at the company...
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...Performance Appraisal At Department of Economic Development How Performance appraisal is being implemented in the DED Introduction Department of Economic Development (DED) is a department that is established by Abu Dhabi government to have an economic dimensions and influences on the investors who are giving the trust to invest in Abu Dhabi. The department is very important for each investor in the UAE because whenever they want to establish any company or factory they have to go and check what are the policies and regulations with the commercial affairs in order to build up a company with a developed economic environment that would attract both the foreigners and locals. It has more than 50 branches in Abu Dhabi, Al Ain and Al Gharbiya. DED’s objective is to achieve the best economic development by its commercial affairs and the economic regulation for the best interest of the country. The research paper will talk about how the performance appraisal will be applied in this government department and how do they deal with it through an economic development environment. On the other hand, we’ll be able to analyze what are the differences between what we’ve studied through this course and what it is implemented through the department. As I am working in the HR department at DED and that always deal with doing the performance appraisal and checking if there is any difficulties that the employees would face it while they are giving their opinion about performance appraisal...
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...MANAGEMENT BY OBJECTIVES (MBO) What is Management by objective? * Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives. * Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his book 'The Practice of Management'. In the 90s, Peter Drucker himself decreased the significance of this organization management method, when he said: "It's just another tool. It is not the great cure for management inefficiency... Management by Objectives works if you know the objectives, 90% of the time you don't." Core Concepts of MBO * According to Drucker managers should "avoid the activity trap", get so involved in their day to day activities that they forget their main purpose or objective. Instead of just a few top-managers, all managers should: * participate in the strategic planning process, in order to improve the implement ability of the plan, and * Implement a range of performance systems, designed to help the organization stay on the right track. Managerial Focus * MBO managers focus on the result, not the activity...
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...Performance Management System Assignment – PMS System of Indian industry.. (Mahindra & Mahindra) MASTER OF BUSINESS ADMINISTRATION Performance management system Performance management is a much broader and a complicated function of HR, as it encompasses activities such as joint goal setting, continuous progress review and frequent communication, feedback and coaching for improved performance, implementation of employee development programmes and rewarding achievements. Performance management system includes the following actions. * Developing clear job descriptions and employee performance plans which includes the key result areas (KRA') and performance indicators. * Selection of right set of people by implementing an appropriate selection process. * Negotiating requirements and performance standards for measuring the outcome and overall productivity against the predefined benchmarks. * Providing continuous coaching and feedback during the period of delivery of performance. * Identifying the training and development needs by measuring the outcomes achieved against the set standards and implementing effective development programs for improvement. * Holding quarterly performance development discussions and evaluating employee performance on the basis of performance plans. * Designing effective compensation and reward systems for recognizing those employees who excel in their jobs by achieving the set standards in accordance...
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...What is a Performance Management System(PMS)?Performance management systems is an organized and systematic way of progress review, goal setting, communication, recognizing and rewarding achievement, providing feedback for better performance and implementing employee development programs. It is a continuous process, which is carried out right from the time when an employee joins an organization till the time he or she leaves . Performance management in HR is aimed at improving the overall corporate performance by enhancing individual performance within the framework of a team. It pushes for optimum performance by setting the right expectations, communicating effectively, defining clear roles, and setting achievable objectives. To enable the employees towards achievement of superior standards of work performance. Performance management is a process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organization. More than just an annual performance review, performance management is the continuous process of setting objectives, assessing progress and providing on-going coaching and feedback to ensure that employees are meeting their objectives and career goals. Objectives To help the employees in identifying the knowledge and skills required for performing the job efficiently as this would drive their focus towards performing the right task in the right way. Boosting the performance of the...
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...CHAPTER 2: RESEARCH METHODS IN I/0 PSYCHOLOGY Learning Objectives Some students may have already had a course in, or an introduction to, research methodology before taking the I/O course. However, it is important that students become familiar with the contents of this chapter because: a) Quantitative methods are central to I/O psychology; b) Understanding research methods is a difficult subject for most students; c) Research methods are often quickly forgotten; d) Several topics relevant to I/0 psychology may not have been covered in previous courses. After studying the material in this chapter the student should be able to: 1. Understand and describe the characteristics of a good research question. 2. Explain each of the major concepts of research design including: variables, setting, generalizability, control, confounding, random assignment, and random selection. 3. Explain what a research design is; Describe different types of research designs as well as list their advantages and disadvantages. 4. Define the basic concepts of measurement. 5. List and describe the types of reliability. 6. Discuss the different ways of assessing validity. 7. Define basic concepts of descriptive statistics. 8. Explain the difference between descriptive statistics and inferential statistics. 9. Explain basic concepts in inferential statistics, especially statistical significance. 10. Report the nature and purpose of meta-analysis. 11....
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...an objective. It can be described as a powerful force that causes people to work within a firm. Throughout organizations, there are many different theories as to how to stimulate employees and instil this desire to high achieve their aims and work to the best of their ability. This answer will examine a process theory called goal-setting theory and a content theory known as Maslow’s need hierarchy theory. Goal-setting theory is one of the most effective motivational strategies which a manager can use to encourage employees to work to the best of their abilities and achieve their goals. People who live goal-orientated lives tend to be more organised and more receptive to these motivational incentives than those who don’t. Goal-setting theory has been established as a very effective means of motivating employees within a firm. “Goal-orientated people tend to find the right road because they know where they are going.” (Organizational Behaviour 5th Edition, Buchanan & Huczynski, A. 2001). People focus on importance and relevance regarding goals when they have some kind of a connection with their personal life. If a particular task has to be completed by a certain day, then the mind of an individual will revolve around completing that task and nothing else. By setting out goals and objectives, individuals, especially employees in the workplace are prompted to act upon them strenuously. The more difficult it is to achieve a goal, the higher the level of performance is by...
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...EMPLOYEE PERFORMANCE THROUGH REWARDS Goal Setting and Motivation Goal Setting is a very useful method of enhancing employee performance. From a motivational perspective, a goal is meaningful objective. Goals are used for two purposes in most organization. ▪ They provide a useful framework for managing motivation. ▪ Goals are effective control device (control meaning the monitoring by management of how well the organization is performing. Goal Setting-Theory Edwin Locke’s goal setting theory of motivation assumes that behavior is a result of conscious goals and intentions. In the original version of goal setting theory has two specific characteristic that were expected to share performance. ▪ Goal Difficulty – is the extent to which goal is challenging and requires effort. ▪ Goal Specificity – is the clarity and precision of the goal. Locke’s attracted much widespread interest and research support from both researchers and managers; so Locked together with Gary Latham, eventually proposed an expanded model of goal-setting process. The expanded model, attempts to capture more fully the complexities of goal setting in organization. • Goal Acceptance is the extent to which a person acts a goal as his or her own. • Goal Commitment is the extent to which a person is personally interested in reaching a goal. Figure: The Goal-Setting Theory of Motivation Broader Perspectives on Goal Setting Some organizations...
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...Enterprise Performance Assessment -- The Performance Assessment Systems of Lenovo Abstract In recent years, the global economic has rapidly development, and it influences the enterprises and their employees. For a company, its structure had fundamentally change. At the same time, employees have more opportunity to develop and wider development space. They can look for better company constantly, in order to realize personal value. Although companies could do survival of the fittest to their employees, loyal and conscientious employees are great wealth to the company undoubtedly. The core issue of sustainable development for a company is how to achieve the balance between company goal and personal development. And the key to solve this problem is have an effective management system and management method. Performance management is the effective management method which we are looking for. This paper will go into Lenovo's performance assessment system and analyze its advantages and disadvantages. Enterprise Performance Assessment -- The Performance Assessment Systems of Lenovo Performance assessment is the assessors follow by job objective or performance standard and use scientific method to assess employees' task progress, responsibilities-fulfilled degrees, and development situation, then give the feedback to employees. Meanwhile, performance assessment is...
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...Chapter 1 Formal performance appraisal plans are designed to meet three needs, one for the organization and two for the individual: 1. They provide systematic judgments to back up salary increases, promotions, transfers, and sometimes demotions and terminations. 2. They are a means of telling a subordinate how he is doing, and suggesting needed changes in his behavior, attitudes, skills, or job knowledge; they let him know "where he stands" with the boss. 3. They are also being increasingly used as a basis for the coaching and counseling of the individual by the superior. Before World War II, only a handful of companies and the military conducted regular formal performance appraisals concentrated more on an individual's personality and traits than on actual achievements against goals and formal analyses of the behaviors that produced those results. Peter Drucker's (MBO), moved from trait assessment to the development of a procedure that concentrated on goal setting, placed responsibility with the subordinate, and made the appraisal process a shared responsibility between subordinate and manager. McGregor's focus was on performance, not personality. Manager, he argues, must abandon the role of THERAPIST and become a coach. General Electric conducted a scientific study Called Work Planning and Review, this appraisal system combined aMBO with the conventional once-a-year, comprehensive, supervisor-controlled appraisal STUDY; analyzing the effects of the...
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...Contents Introduction: Performance management system objective: Performance management strategy: Performance management plan: Performance agreement: Goal setting: Psychological contracts Job Description: Coaching and social support: Leadership Engagement appraisal and assessment: Feedback: Employee satisfaction measurement: Introduction: Performance management systems, as set up and administered by HR functions, typically serve to rate the performance of individual employees and shape their behaviour towards superior performance for the next rating period. It plays an important role in evaluating the employee. In this journal I have tried to develop a performance management plan for sales employee in a project based company. Performance management is key to a successful business, but performance management doesn't just happen, nor is it an easy process. The essence of performance management lies in a) knowing the details of what you wish your employees to do and b) evaluating how well they do it. (Leonard, June 10, 2013). Performance metrics are a critical ingredient of performance management, a discipline that aligns performance with strategy. Performance management develops IT to follow up execution of business strategy and help companies to attain their goals. Performance management is step by step process. That involves 1 creating strategy and plans 2. Monitoring the execution of those plans 3. Adjusting activity and objectives to achieve strategic goals...
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...Employee Performance Management is a process for establishing a shared workforceunderstanding about what is to be achieved at an organisation level. It is about aligning the organisational objectives with the employees' agreed measures, skills, competency requirements, development plans and the delivery of results. The emphasis is on improvement, learning and development in order to achieve the overall business strategy and to create a high performance workforce. How Annual Appraisals are Different But Part of Performance Management Most organisations have some type of employee appraisal system, and many are experiencing the shortcomings of manual staff evaluation systems. When discussing workforceperformance the most commonly asked question is "How does Performance Management differ from performance appraisals or staff reviews"? Performance Management is used to ensure that employees' activities and outcomes are congruent with the organisation's objectives and entails specifying those activities and outcomes that will result in the firm successfully implementing the strategy (Noe et al. 2000, p.55). An effective Performance Management process establishes the groundwork for excellence by: * Linking individual employee objectives with the organisation's mission and strategic plans. The employee has a clear concept on how they contribute to the achievement the overall business objective, * Focusing on setting clear performance objectives and expectations through the use...
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...Case summary: Bangladesh has achieved a tremendous growth rate in its service sector. Its contribution in nation’s Gross Domestic Product (GDP) is all about 60%. One of the well known private management and business consultant firms is the teamwork limited. They have a long-term vision to become the most successful and leading international business consultancy firm in the management consultancy business. The mission of the firm was to provide superior value to their clients by using their capability, to meet the requirements of the customers, utilize full potential and objective, and make appropriate contribution to the economy. The firm also set their specific objective. For the last eight years they are performing well providing pre-feasibility and feasibility study, Management consultancy, business automation, financial analysis, portfolio management, business investigation, process re-engineering, business integration, taxation and so on. In internal management teamwork follows strong culture of participation approach in its routine management and activities. The management committee consisted of seven members. Teamwork as a service based organization the employees or human resources are the focal point. Top management motivates them over the time. The internal management develops an effective strategy to see what’s going on the firm. So implement a quarterly survey system in order to get all types of information including employee attitudes toward work ,customer attitudes...
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