performance reviews

Performance review

Organizations have sought to actively use different performance review systems (PMS) to measure the effort of the employees and their contribution towards the success or failure of the organization (Hardina& Montana, 2011).The types of PMS used by organizations vary from 360-degree evaluation systems to management by objectives (MBO). While the core purpose of these systems is to measure performance, they bring other effects which impact the employee morale, employee retention, and business operations either positively or negatively.

The performance review system which is currently being used within my organization represents management by objectives (MBO). This form of appraisal involves the setting of specific goals which are agreed on by the manager and the employees (Kurian, 2013). The employees strive to meet these objectives and are judged by how successfully, or otherwise, they manage to achieve the goals. The essence of this approach is to set a goal which creates a standard upon which the actual performance of the employee is measured against. While most of the objectives which the employees are expected to meet are formed through consultation, other goals are formulated by management and communicated to the employees.

The use of MBO in my organization impacts me in a positive as well as negative manner. The motivation is high when performing the tasks whose objectives were formed through a collective effort (Selden& Sowa, 2011). This is because I feel that I was involved in the entire process of setting the goal and selecting the most appropriate solution. The use of this approach also boosts my morale because I’m able to communicate openly with my seniors on the task at hand during the goal setting and throughout the implementation period. The process is, however, not as fulfilling when performing preset objectives. Despite the low morale when performing such tasks, the importance of ultimate outcome on the organization’s overall objective drives my performance.

The organization always ties the objectives of the system with those of the overall strategy. The use of MBO has simplified the operations within the organization because all processes and expectations are clearly defined. This helps avoid confusion and hastens the execution of duties. In their study of the implementation of MBO in Hewlett-Packard, Selden& Sowa (2011) noted that the shared plans stipulated how the processes are to be handled and the employees found it easier to reach the agreed objectives. This is similar to the situation in my organization when the processes are improved through the use of MBO.

The main drawback of using MBO is the emphasis on objectives over development of plans. This has been evident within my organization when employees are expected to perform different tasks whose goals are not similar. The overall process of completing these separate tasks is more taxing than it would have been if they were collectively put under one plan. According to Castellano et al. (2004), this pitfall discredits MBO when it appears often when the system is being implemented within an organization since it may bring unethical behavior.

In conclusion, the employee appraisal approach used by my organization (MBO)has more benefits than drawbacks. This is because it improves employee morale and goal commitment thus increasing employee retention. It also increases communication among employees and management and improves task performance. Its only drawback is the reduced interest on plans. This, however, does not massively affect the employees because is a rare occurrence.

 

References

Castellano, J. F., Rosenzweig, K., &Roehm, H. A. (2004). How Corporate Culture Impacts Unethical Distortion of Financial Numbers: Managing by Objectives and Results (MBO/MBR) Could Be Counterproductive and Contribute to a Climate That May Lead to Distortion of the System, Manipulation of Accounting Figures, and, Ultimately, Unethical Behaviour.Management Accounting Quarterly, 5(4).

Hardina, D., & Montana, S. (2011). Empowering Staff and Clients: Comparing Preferences for Management Models by the Professional Degrees Held by Organization Administrators.Social Work, 56(3), 247-254.

Kurian, G. T. (2013). The AMA Dictionary of Business and Management. New York: AMACOM.

Selden, S., & Sowa, J. E. (2011). Performance Management and Appraisal in Human Service Organizations: Management and Staff Perspectives. Public Personnel Management, 40(3), 251-263.