Employee Evaluation Systems / Management By Objectives (MBO)

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Employee Evaluation Systems /
Management By Objectives (MBO)

An evaluation system is a formal method of evaluating employee performance and commitment. Management by Objectives (MBO – Management by Objectives) is based on the assumption that the awareness and motivation of employees is the decisive factor in the success of a company.

Employee Evaluation Systems

Evaluation includes both qualitative and quantitative indicators of employees’ performance in the workplace and their particular measurable achievements. Evaluation can sometimes be linked to MBO and/or management by competence.

We help our Clients define the key foundations of the evaluation system, draft the essential documents and instructions, prepare internal communication processes concerning the goals and principles of the evaluation as well as train both the evaluators and the employees being evaluated to ensure that the implementation of the evaluation process is well received and that the results have the expected impact. Once the evaluation system is implemented, we monitor its operation and efficiency and reinforce the motivation and development aspects of the system.

Management By Objectives (MBO)

Management by Objectives focuses on the common team goal, realised through smaller constituent goals, and the collective aim of achieving the best possible results.

Three key elements of MBO are:

  • process of the planning team and individual professional goals in line with the company goals,
  • process of monitoring the level of professional goal achievement through individual employee results evaluation,
  • possibility of linking goal achievement level to the bonus/promotion policy.

Implementing MBO involves many aspects of the company’s operations. It requires open and clear communication, a proper process understanding within the company, a clear definition of the organisation’s long- and short-term goals, as well as their translation into goals for particular managers and employees. For the implementation of MBO to be successful, the company and its managers need to be prepared to set, plan, monitor and evaluate goals properly.w

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