a. Management by Objectives (MBO) – Management by Objectives is used in most companies who believe in result as bases of performance management. Under this system, the top management defines the company’s strategic goals and objectives and passes it on to the next level of management and down to the line. The manager and subordinates agree on performance indicators and these performance goals are then the points that will be evaluated at the end of a specific period. b. Productivity Measurement and Evaluation System (PROMES) – the goal of this system of measurement is to motivate the employees to go for a higher level of productivity. It is a means of measuring and feeding back productivity information to personnel. The following are the accomplishment of this evaluation process: • The manager and subordinates identify the product and the process of accomplishing the evaluation, plus the level of quality of performance. • The indicators are established and will be made as bases for management evaluation. • The staff establishes the contingencies and possible problems related to indicators and the level of evaluation associated with them. • A feedback system is developed providing the employees and work group with information about their specific levels of performance on each of the indicators. Explain this.
The result approach focuses on managing the objectives, measurable results of a job or work group. This approach assumes that subjectivity can be eliminated from the measurement process and that results are the closest indicators of one’s contribution to the organizational effectiveness. We will examine two performance management systems that used results:
a. Management by Objectives (MBO) – Management by Objectives is used in most companies who believe in result as bases of performance management. Under this system, the top management defines the company’s strategic goals and objectives and passes it on to the next level of management and down to the line. The manager and subordinates agree on performance indicators and these performance goals are then the points that will be evaluated at the end of a specific period.
b. Productivity Measurement and Evaluation System (PROMES) – the goal of this system of measurement is to motivate the employees to go for a higher level of productivity. It is a means of measuring and feeding back productivity information to personnel. The following are the accomplishment of this evaluation process:
• The manager and subordinates identify the product and the process of accomplishing the evaluation, plus the level of quality of performance.
• The indicators are established and will be made as bases for management evaluation.
• The staff establishes the contingencies and possible problems related to indicators and the level of evaluation associated with them.
• A feedback system is developed providing the employees and work group with information about their specific levels of performance on each of the indicators.
Explain this.
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