Often Management by Objective comes ahead about when we talk about setting goals during the performance appraisal process. But MBO might not suitable in all kinds of circumstances and organizations.
I think MBO makes the most sense when you have a workforce of certain characteristics: namely professionals with high intrinsic motivation, high knowledge of their area and high drive for taking initiatives. Under those circumstance, it is realistic to expect them to lay out challenging and SMART goals for themselves. If your target workforce doesn't have these qualities for a reason, than Balanced Scorecard option is your best bet -in my opinion-. That way, goal setting can be done externally, but confirmed and agreed upon by the employee.
May be a periodic and anonymous "goal commitment scale" assessment can be used to measure the overall health of the system.
@ Faris Alshubiri - thank you for such a relevant article.. Journal of Occupational and Organizational Psychology is a heard-about journal. cheers!
@Zeynep Aksehirli - i agree with your perspective but MBO is not effective in some organizations (esp govt) considering their structure and nature of work. My quest is another PA tool or combination of tools that does the work of intrinsically' motivating employees as MBO does. Thank you for your effort and opinion :)
If you wish to apply the tool to government performance, I'd suggest reviewing the Government Performance Project work at Syracuse University and the Balanced Scorecard implementation at the US Department of Commerce Economic Development Administration.
Perhaps part of the problem lies in searching for A tool. Often it is more effective to combine tools, drawing on the characteristics of each that best support situational needs. Different groups of employees have different characteristics - professional or otherwise, as Zeynep Aksehirli notes above, virtual or co-located, customer-facing or internally-focused, as some examples. Mixing the outcome focus of MBO with the behavioral focus of the behavioral anchors rating approach could generate richer feedback and results than either alone, for example, or one of them with critical incident approach.
One of the most effective elements I've used with clients is to combine a focus on success factors associated with the job with specific, time-bound goals of MBO.
I know government, public and private companies have done great with Balanced Scorecard though it requires commitment from all stack-holders. The concept of Balanced Scorecard involves goal setting in a very systematic way- considering processes and products(outcomes), measures, targets etc [note that mostly MBO only focuses on the designing SMART objectives, then attempt measuring them). Hence, formulating and implementation Balanced Scorecard preferably using the 9 step Model from the America Institute of Balanced Scorecard would help, both as a strategic management tool for the whole firm, and as a tool to manage performance at company, department , team and performer(individual) levels
Congrats for putting up an interesting question. To be most specific, using the MBO technique in HR performance evaluation is largely most advisable. All the best
For a general overview about the application of the Balanced Scorecard please feel free to refer to my research paper: "The Balanced Scorecard and Beyond – Applying Theories of Performance Measurement, Employment and Rewards in Management Accounting Education". In the study, the importance of alignment of the company's strategy with the BSC is stressed. There you can find further references. It was published in the International Research Journal of Management Sciences 4 (7), pp. 483-491 and thus can be used for referencing.
Paul
Article The Balanced Scorecard and Beyond – Applying Theories of Per...
As expert in Performance Management and specially Key Performance Indicators. i would prefer to have Performance/Competencies Appraisal where 75% based on KPIs and 25% based on Competencies through performance review questions on a scale from 1 to 5 and to be reviewed on quarterly basis to give 3 opportunities for employees to improve and get better performance and results.