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Hi All,

I am in a big trouble :( :( :(, please help me out. My CEO has asked me to prepare an appraisal system for the Senior Management, specifically the Vice President of our organization. Can anyone please help me in designing an appraisal system?

Regards, Kanupriya

From India, Ahmadabad
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Hi Kanupriya,

The solution is simple. You can prepare the 360-degree appraisal. At the senior management level, it is compulsory to follow the 360-degree appraisal system. The 360-degree performance appraisal system includes behavior, attitude, and relations between senior management and middle management, etc. Using a questionnaire format is best suitable for the senior management to conduct this appraisal secretly. Only you and the CEO should know about it. These are my opinions only.

Any mistakes, please excuse.

Thanks & Regards,
Srinivas Reddy
MBA HR

From India, Hyderabad
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Dear Kanupriya,

Besides the 360 degrees method, which concentrates more on subjective traits, a popular method of Performance Appraisal used nowadays in many companies is the Results Method - Management By Objectives (MBO)

The use of management objectives was first widely advocated in the 1950s by the noted management theorist Peter Drucker.

MBO (management by objectives) methods of performance appraisal are results-oriented. That is, they seek to measure employee performance by examining the extent to which predetermined work objectives have been met.

Usually the objectives are established jointly by the supervisor and subordinate. An example of an objective for a sales manager might be: Increase the gross monthly sales volume to $250,000 by 30 June.

Once an objective is agreed, the employee is usually expected to self-audit; that is, to identify the skills needed to achieve the objective. Typically they do not rely on others to locate and specify their strengths and weaknesses. They are expected to monitor their own development and progress.

For example, whatever else a manager and employee may discuss and agree in their regular discussions, let us suppose that they feel that it will be sensible to introduce a key performance indicator to show the development of sales revenue in a part of the firm. Then the manager and the employee need to discuss what is being planned, what the time-schedule is and what the indicator might or might not be. Thereafter the two of them should liaise to ensure that the objective is being attended to and will be delivered on time.

Organizations have scarce resources and so it is incumbent on the managers to consider the level of resourcing and to consider whether the objectives that are jointly agreed within the firm are the right ones and represent the best allocation of effort. Also, reliable Management information systems are needed to establish relevant objectives and monitor their "reach ratio" in an objective way

MBO is often achieved using set targets. MBO introduced the SMART criteria: Objectives for MBO must be SMART (Specific, Measurable, Achievable, Realistic, and Time-Specific).[1]



Advantages

The MBO approach overcomes some of the problems that arise as a result of assuming that the employee traits needed for job success can be reliably identified and measured.

Instead of assuming traits, the MBO method concentrates on actual outcomes.

If the employee meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job performance. Employees are judged according to real outcomes, and not on their potential for success, or on someone's subjective opinion of their abilities.

The guiding principle of the MBO approach is that direct results can be observed, whereas the traits and attributes of employees (which may or may not contribute to performance) must be guessed at or inferred.

The MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up employee performance.

MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts - as one might take apart an engine to study it. But put all the parts together and the performance may be directly observed and measured





How do you implement MBO? What should an individual's objectives state? Objectives can state

The objectives of the individual's group.

The contributions the individual is expected to those objectives.

The contributions the individual is expected to make to help others obtain their objectives.

The contributions the individual can expect to receive from others towards the attainment of his own objectives.

Individual development objectives.

It may also be helpful for the individual to list obstacles in himself and others that may prevent him from reaching his goals.

Who should set the objectives? Each individual should set his objectives himself in relation to his group's objectives. Each individual should also participate in the development of his group's objectives and assent to them.

How should achievement be measured? An individual should measure his own performance against his objectives. He should receive and prepare measurements soon enough to make any changes necessary for the desired results. Measurements should go to the individual first, not his superior. Management by objectives is a tool for self-control, not a tool for control from above.

Am attaching a format for your reference

From United Arab Emirates, Abu Dhabi
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