7 Characteristics and Features of MBO in Performance Appraisal

Carroll and Tosi (1973) in an extensive account of MBO, note its following characteristics:

Characteristics

1. The establishment of organisational goals.

2. The setting of individual objectives in relation to organisational goals.

3. A periodic review of performance as it relates to organisational goals.

4. Effective goal setting and planning by top management.

5. Mutual goal setting

6. Frequent individual performance reviews

7. Some freedom in developing means of achieving objectives.

MBO is thus, a method of mutual goal setting, measuring progress towards the goals, tacking action to assure goal attainment, feedback and participation. It is a result- oriented philosophy, enabling an employee to measure progress towards a goal, which the employee often has helped to set.

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Features of MBO: The key features of MBO are:

1. Superior and subordinate get together and jointly agree upon the list of principal duties and areas of responsibility of the individual’s job.

2. The subordinate sets his own short-term performance goals or targets in co­operation with his superior.

3. They agree upon criteria for measuring and evaluating performance.

4. From time-to-time (periodically), the superior and subordinate get together to evaluate progress towards the agreed-upon goals. At these meetings, new or modified goals are set for the remaining period.

5. The superior plays a supportive role. He tries, on a day-to-day basis, to help the subordinate achieve the agreed upon goals.

6. In the appraisal process, the superior plays less of the role of a judge and more of the role of one who helps the subordinate attain the organisation goals or targets.

7. The process focuses upon results accomplished and not upon personal traits.