Question

During the past few weeks, we have learned that there are various methods of conducting employee performance appraisals (e.g., trait, behavioral, ranking, MBO, etc.). Your task for this assignment is to explain Management By Objectives, and discuss how it could be effectively used to impact employee compensation.

Your response should consider the potential impact the performance evaluation method could have on at least three different organizational stakeholder groups. Also, your assignment must include your thoughts on what organizations can do to prevent ethical and legal challenges that might from arise from linking the method of performance appraisal you chose to employee compensation.

Your assignment should be approximately 5-7 pages in length (not including cover page and reference list) and include ample scholarly and professional sources to support your key ideas. This assignment will be graded according to the rubric attached below.

Answer 1

answer-

1- explain Management By Objectives, and discuss how it could be effectively used to impact employee compensation.

Management by objectives or MBO is the performance evaluation method in which the manager or supervisor defines & communicate the objectives of the overall organizations to the employee.MBO is an approach in which the performance of the employee is compared withe the objectives of the organization.

the benefits of MBO are -

• it helps in improving employee motivation
• improving in employee commitment towrads the organization by clarity of goals
• better communication between the management & employees.

MBO helps the management to plan the compensation for the employees for the employee who performs upto or above standards or below standards.

• high performer employee would be compensated well or rewarded.
• under performer has to raise thier bar to get the compensation they want.

the potential impact the performance evaluation method could have on at least three different organizational stakeholder groups

the three different organizational stakeholder groups are-

1. employees
2. owners/shareholders
3. investors

the impacts are-

• improvement in the performance of the employee group by MBO.
• completion & commitment of the objectives of the shareholders/owners.
• better achievement of the organizational objectives would lead the better interest to investors.
• improved communicatin between the management & employee group.

what organizations can do to prevent ethical and legal challenges that might from arise from linking the method of performance appraisal you chose to employee compensation.

following points can be used -

• fair & honest policy in the performance appraisal.
• compenstation to employee under the employee compensation act.
• prohibition of discrimination while comparing the performance of the employee by manager.
• adopt ethical culture & code of conduct in the company.

* above answer is written in my own words.hope this answer would help you in your assignment.good luck.