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Management by Objectives (MBO)
Management by Objectives (MBO) is a process of defining objectives within an organization so that management and employees agree on the objectives and understand what they need to do in the organization. The term "management by objectives" was first popularized by Peter Drucker in his 1954 book 'The Practice of Management'.
The essence of MBO is participative goal setting, choosing courses of action, and decision-making. An important part of MBO is the measurement and comparison of the employee's actual performance with the standards set. Ideally, when employees are involved in goal setting and selecting the course of action to be followed by them, they are more likely to fulfill their responsibilities.
Graphic Rating Scales
Definition of the rating scales:
- The Rating Scale is a form on which the manager simply checks off the employee's level of performance.
- This is the oldest and most widely used method for performance appraisal.
- The scales may specify five points, so a factor such as job knowledge might be rated 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job).
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