360 DEGREE APPRAISAL
MBO
360 DEGREE APPRAISAL
In order to make appraisal more objective, transparent and
Participative concepts such as self-appraisal , peer appraisal,
Subordinate appraisal and appraisal by customer were introduced.
360 degree system involves evaluation of an employee by every
One .
FOUR INTEGRAL COMPONENTS OF
360 DEGREE APPRAISAL
SUPERIOR
SELF
EMPLOYEE
SUBORDINATE
PEERS
SELF APPRAISAL It gives employee absolute freedom to
objectively looks at his/her strengths and
areas of development along with an
opportunity to assess the performance.
SUPERIOR APPRAISAL-
The focus is to provide constructive feed back
on employee performance .
Superior must communicate to the employee
in clear way what the organization plans for
the employee.
SUBORDINATES APPRAISAL The purpose of subordinate’s appraisal is to get
first hand assessment of how the subordinates
perceive their superior to be in terms of style of
functioning.
PEERS APPRAISAL-
They must include peers both form with in the
department as well as other department .
Select the right peers for getting the appraisal
done.
Advantages Greater self-awareness of the top management
 Empowerment is facilitated .
 Inflexible managers are forced to initiate self-change.
Disadvantages Time and cost consuming
 Complex
 Disagreement
 Response from colleagues tends to be biased
MANAGEMENT BY
OBJECTIVES

(MBO)
Management By Objectives (MBO)
A method whereby managers and
employees define objectives for
every department, project, and
person and use them to monitor
subsequent performance.
THE NATURE & PURPOSE OF
MBO
MBO is concerned with goal setting and
planning for individual managers and their units.
The essence of MBO is a process of joint goal
setting between a supervisor and a subordinate.
Managers work with their subordinates to
establish performance goals that are consistent
with higher organizational objectives.
MBO helps clarify the hierarchy of objectives as
a series of well-defined means-ends chains.
Essential Steps for MBO
 Set Goals
 The most difficult step.
 Develop Action Plan
 For both workgroups and individuals.
 Review Progress/ Take corrective action
 Periodic during the year.
 Appraise Overall Performance.
 Review Annual Goals.
Essential Steps for MBO
Set Goals
–The most difficult step.
–Specific target and timeframe
–Assign responsibility
Develop Action Plan
–Course of action
–For both workgroups and
individuals
Review Progress
–Periodicity?
–Course corrections
Appraise Overall Performance.
–How are we doing?
–Do we need to restate our goals?
STRENGTHS
Organizations create a powerful motivational
system for their employees by adopting MBO.
Through the process of discussion and
collaboration, communication is greatly
enhanced.
With MBO performance appraisal may be
done more objectively.
STRENGTHS
MBO helps identify superior managerial talent
for future promotion
MBO facilitates control through the periodic
development and subsequent evaluation of
individual goals and plans.
WEAKNESSES
The major reason for MBO failure is lack of top
management support
goals and plans cascading throughout the
organization may not be those of top management.
Some firms may overemphasize quantitative
goals
Some managers will not or cannot sit down and
work out goals with their subordinates
Failure to teach MBO philosophy
THANK YOU
QUESTION WELCOME