Management by Objectives (MBO) is a process where management and employees agree on objectives for the organization and what each employee needs to do to achieve them. It involves participative goal setting and decision making between managers and employees. MBO works best when employees are involved in setting goals and determining how to meet them, as they are more likely to fulfill their responsibilities. While it takes time to become effective, MBO clarifies objectives, gives managers and employees a clear understanding of important work areas and performance standards, and can improve morale and communication by increasing participation.

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2. Hello!
I am Lorenzo Angelo V. Jubli
You can call me ZOILO, L.A., ZOEY, POGI

3. Modern Rating
Methods
I WILL BE READINGPRESENT

4. Management by Objectives (MBO)
⬗ Is a process of defining objectives within an organization
so that management and employees agree to the
objectives and understand what they need to do in the
organization in order to achieve them.
⬗ The essence of MBO is participative goal setting,
choosing course of actions and decision making between
management and employees.
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Popularized by Peter Drucker in 1954

5. Management by Objectives (MBO)
⬗ The important part is the measurement and the comparison
of the employee’s actual performance with the standards
set.
⬗ MBO works best when employees themselves have been
involved with the goal setting and in choosing the course of
action to be followed by them, they are more likely to
fulfill their responsibilities.
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7. Management by Objectives (MBO)
DISADVANTAGES
⬗ 1. It takes a few years to be effective.
⬗ 2. Some companies tend to raise goals. If these
are too high, employees become frustrated.
⬗ 3. Some employees do not want to be held
responsible and goals forced upon them may
lead to ill-feeling. (yes man during MBO)
ADVANTAGES
⬗ 1. The need to clarify objectives is stressed and
suggestion for improvement is obtained from
all levels of management.
⬗ 2. All managers have a clear idea of the
important areas of their work and of the
standards required.
⬗ 3. The performance of staff can be assumed
and their needs for improvement highlighted.
⬗ 4. Greater participation may improve morale
and communication.
⬗ 5. It makes individuals more aware of
organizational goal.
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• A.K.A. the multi-rater feedback
• Commonly used as development tool

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• As the name implies, it
can provide a well-
rounded and holistic view
of any individual by
gathering feedback from
people they work and
interact with
SELF a.k.a Focus
Manager
Peers
Peers
Direct reports
Client/Customer
Subordinate

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• 360 degree feedback can be used
to support individual development
plans

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• Gather and understand the
perspective of others
• And to create and build a
feedback culture

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• 360 degree feedback is usually
conducted via an online survey

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• At least 6 to 8 raters will help get the
most well-rounded views of how the
focus (the one being rated) is
perceived
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,it is important to talk to the raters in order to:

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• The focus will receive a report that gives an
overview of the raters’ scores and any
comments they have included
Manager
• Feedbacks are anonymous except for the manager’s
ratings and comments
Anonymous

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22. 360 Degree Feedback Appraisal
DISADVANTAGES
⬗Frank and honest opinion may not be received.
Since it is anonymous, it may have troll respondents
⬗Over reliance on technology
ADVANTAGES
⬗ Means for employees who don’t know how to tell
negative points in front of the focus
⬗ Anonymous
⬗ Include open-ended questions
⬗ Individuals get a broader perspective as to how they
are perceived by others
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23. Behaviorally Anchored Rating Scales (BARS)
⬗ the BARS method bases evaluations on specific behaviors
required for each individual position in an individual
company.
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24. Behaviorally Anchored Rating Scales (BARS)
⬗ Development of BARS evaluations requires an in-depth understanding of each
position’s key tasks, along with an understanding of the full range of behaviors
displayed by individuals in carrying out such tasks.
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25. Behaviorally Anchored Rating Scales (BARS)
⬗ Development of BARS evaluations requires an in-depth understanding of each
position’s key tasks, along with an understanding of the full range of behaviors
displayed by individuals in carrying out such tasks.
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Behaviors for Army Nurses

26. Behaviorally Anchored Rating Scales (BARS)
⬗ You rate these behaviors for each employee; then you anchor each behavior to
points on a rating scale, which indicates whether the behavior is exceptional,
excellent, fully competent, or unsatisfactory. The result is a rating scale for each
task.
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27. Want big impact?
Use big image.
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28. Want big impact?
Use big image.
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29. Want big impact?
Use big image.
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30. Behaviorally Anchored Rating Scales (BARS)
DISADVANTAGES
⬗Time consuming to set up
ADVANTAGES
⬗ Focus is on desired behaviors
⬗ Scale is for specific job
⬗ Fully individualized
⬗ Desired behaviors are clearly outlined
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Each BARS form must be
created from scratch for every
position in the company.

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• An assessment centre is just one part of a
selection process where your suitability is
assessed for a particular role

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Assessors
• You will usually be assessed by
one or more trained Assessors
against what is required to
successfully perform role
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• You’ll experience a number of
different exercises and
assessments to give you plenty of
opportunities to demonstrate your
capabilities

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What
you will be asked to do?

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You may be asked to give a
where you’ll be required to review
business information, write a strategic
plan, and present to key stakeholders.
Once your presentation is complete, you’ll then
be asked questions about the strategic plan
you have presented.

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require you to work together with other
people at an assessment centre.

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usually ask you to plan, organize, and
make decisions based on information you
are required to read.

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is when you need to interact with another
person to discuss a particular issue and
agree on a solution.
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Role plays can be focused on a:
• Manager-employee interaction
• A peer to peer discussion or
• Sales orientation

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Typically psychometric assessments
objective measurement of skills
and knowledge, abilities,
attitudes, personality traits, and
educational achievement.
This assessment may be conducted at the
centre or beforehand

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you’ll have to share more about yourself and your
previous experience as relevant to the role or
level you are being assessed for.

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• These exercises are usually timed so
that everyone gets the same
opportunities to demonstrate their
capabilities in a given timeframe.

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You can learn a lot about your strengths and potential development
areas through getting insight on what you did well and what you
could improve.

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45. Assessment Centres
DISADVANTAGES
⬗requires a considerable investment in time and
resources-the design process alone can take many
months.
⬗Expensive to run
ADVANTAGES
⬗ Flexibility
⬗ Highly rated by employers and candidates
⬗ provide evidence of the most valid method of
predicting a candidate's performance in a job.
⬗ 'real life' exercises can provide a good indicator of a
candidate's probable future performance.
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46. Human Resource Accounting (HRA)
⬗ HRA method values the relative worth of human resources
in terms of money.
⬗ Valuation of employees is calculated in terms of costs and
contributions to employers.
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47. Human Resource Accounting Method
CONTRIBUTION
⬗Total value added in monetary terms.
COST (all expenses incurred on them)
⬗ Compensation +
⬗ Recruitment +
⬗ Selection costs +
⬗ Induction and training costs +
⬗ ETC. (End of Thinking Capacity) joke lang 
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The difference between the cost and the contribution will be the
performance of the employees. Ideally, the performance of the
employees should be greater than the cost incurred to them.

48. Human Resource Accounting Method
DISADVANTAGES
⬗Apathetic.
⬗ a person having a lower value may feel
discouraged and this, in itself, may affect his
competence in work.
ADVANTAGES
⬗ Easy to compute
⬗ Provide objective information about cost and value
of HRs
⬗ Management can also judge as to whether there is
adequate return on investment in human resources.
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Common Problems
in Appraisal

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Common Problems in Appraisal:
1. Poorly trained managers
2. Inconsistent ratings
3. Not used for performance improvement
4. First impression
5. Halo effect
6. Horn effect
7. Central tendency
8. Spillover effect
9. Recency effect
10. Manipulation
• organizations shouldn't assume that
managers know how to conduct
appraisals effectively, even if they
have many years of experience as
managers.
• it is important that training is
provided to introduce managers to
the philosophy of performance
appraisal at the organization,
including a review of the forms, the
rating system and how the data
gathered is used.

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Common Problems in Appraisal:
1. Poorly trained managers
2. Inconsistent ratings
3. Not used for performance improvement
4. First impression
5. Halo effect
6. Horn effect
7. Central tendency
8. Spillover effect
9. Recency effect
10. Manipulation
• What one manager considers to
be "acceptable" performance,
another may consider "not
meeting expectations.“
• Usually in situations where the
criteria used are subjective and
not based on any measurable
performance outcomes.
VS

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Common Problems in Appraisal:
1. Poorly trained managers
2. Inconsistent ratings
3. Not used for performance improvement
4. First impression
5. Halo effect
6. Horn effect
7. Central tendency
8. Spillover effect
9. Recency effect
10. Manipulation
• Some government agencies in
the Philippines used appraisal to
collect monetary incentive.
Performance Based Bonus
(PBB)

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Common Problems in Appraisal:
1. Poorly trained managers
2. Inconsistent ratings
3. Not used for performance improvement
4. First impression
5. Halo effect
6. Horn effect
7. Central tendency
8. Spillover effect
9. Recency effect
10. Manipulation
• Employee performance is
appraised based on rater’s first
impression
“ Thinking is difficult, that is why most
people judge.”

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Common Problems in Appraisal:
1. Poorly trained managers
2. Inconsistent ratings
3. Not used for performance improvement
4. First impression
5. Halo effect
6. Horn effect
7. Central tendency
8. Spillover effect
9. Recency effect
10. Manipulation
• Employee performance is
appraised based on the perceived
positive quality, feature, or trait.
“They are not blind, they just
choose to see the good in you.”

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Common Problems in Appraisal:
1. Poorly trained managers
2. Inconsistent ratings
3. Not used for performance improvement
4. First impression
5. Halo effect
6. Horn effect
7. Central tendency
8. Spillover effect
9. Recency effect
10. Manipulation
• Employee performance is
appraised based on the perceived
negative quality, feature, or trait.

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Common Problems in Appraisal:
1. Poorly trained managers
2. Inconsistent ratings
3. Not used for performance improvement
4. First impression
5. Halo effect
6. Horn effect
7. Central tendency
8. Spillover effect
9. Recency effect
10. Manipulation
• Employee performance are all
rated average.

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Common Problems in Appraisal:
1. Poorly trained managers
2. Inconsistent ratings
3. Not used for performance improvement
4. First impression
5. Halo effect
6. Horn effect
7. Central tendency
8. Spillover effect
9. Recency effect
10. Manipulation
• Employee present performance is
based on distant past performance.
“he was the best employee in the
past, he must be good presently”
mentality.
“ Past is a nice place to visit but not a
nice place to stay.”

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Common Problems in Appraisal:
1. Poorly trained managers
2. Inconsistent ratings
3. Not used for performance improvement
4. First impression
5. Halo effect
6. Horn effect
7. Central tendency
8. Spillover effect
9. Recency effect
10. Manipulation
• Employee present performance is
based on recent performance
• Other behaviors demonstrated
during the appraisal period are not
considered.
“he sold 3 units of Mazda3
yesterday, he is very good!”
mentality.

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Common Problems in Appraisal:
1. Poorly trained managers
2. Inconsistent ratings
3. Not used for performance improvement
4. First impression
5. Halo effect
6. Horn effect
7. Central tendency
8. Spillover effect
9. Recency effect
10. Manipulation
Reasons may include:
• High rating of subordinates to look
good from the perspective of other
departments. Showing-off that he
manages well.
• A friend and/or other types of
relationship
• To punish disliked employee,
encouragement to quit
“ I just want you. That’s all. All your flaws,
mistakes, smiles, jokes, sarcasms and
everything. I just want you.” mentality

60. Handling and
Criticizing
Subordinates
walang forever.

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1. Treat criticism as a form of feedback.
The term criticism vs feedback
Criticism carries the baggage of negativity
By contrast, feedback implies the
participation of both parties. A 2 way
give and take where both can learn
and grow.

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1. Treat criticism as a form of feedback.
Feedback is an opportunity for mutual growth
You learn by getting feedback, and you learn by giving feedback.
The moment you reposition your criticism into the
context of feedback, both you and your employee
will feel more relaxed and receptive.

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2. Provide criticism on an ongoing basis.
Many bosses delay criticism until an employee's yearly performance review.
Which is ineffective, because the employee will be so concerned with money
issues that he or she won’t be able to concentrate on personal growth.
Logic is as long as nobody criticize you, your criticizing thing will
remain out of your perspective, unprioritized and/or nonexistent.

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2. Provide criticism on an ongoing basis.
Remember: Reviews are about salaries; criticism (i.e., feedback) is about
developing the employee.
This entails paying attention to the employee's behavior, stepping
into the employee's shoes, appreciating his or her experience, and
helping to move that employee into a learning mode.

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3. Dole out criticism in small doses.
If you stockpile problems, waiting for the "right moment" to
bring them up, chances are the employee will simply be
overwhelmed.

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3. Dole out criticism in small doses.
Criticism is best given real time or immediately after the fact.
Don't wait until problems fester.
The very best time to provide criticism is whenever somebody is
making positive progress but there's still room for improvement.
In this line of thinking, criticism is present whether you are
performing well or badly.
One can never be good enough.
Don’t be historical.

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Rule of thumb: Balance
out every criticism with
honest complimetns.
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Hey, you encode fast, 100
words per minute, but
there’s a typo here. :)

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4. Begin by asking questions.
Your goal is not (or should not be) to persuade employees to
do things the way that YOU would do them.
Instead, dig deeper and find the roots of the specific problem.
Ask questions, such as:
"Why do you approach this situation in this way?"
"How could we have done better?"
"What do you think could use improvement?"
Such questions lead employees to discover their
own solutions and their own insights.

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4. Begin by asking questions.
One very simple example:
Problem: What is the total of 2, 2, and 2?
Manager: Employee:Perspective/ Approach
2 +
2 +
2 =
6
2 x
3 =
6
Just because he/she has different
perspective/ approach does not
mean he/she was incorrect.

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5. Listen, acknowledge, and learn.
You may think that you understand what's going on and why
something happened, but you might easily be wrong.
When you listen to an employee and acknowledge what he
or she has to say, you learn about the world from that
employee's point of view.
That in turn gives you more understanding of the employee's
motivations and desires, which in turn helps you to better
understand how to help him or her change his or her
behavior.

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6. Address the behavior, not the person.
Never say something like
"You're unreliable! You've been late three times this week !"
Instead, address the behavior that's troubling, like so:
"You're usually punctual, but this week you've been late three times.
What's up?"

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6. Address the behavior, not the person.
Similarly, when you want to change a behavior, don't address it as a
personality issue. Asking
"What can you do to become more reliable?" is a dead end.
What's more likely to work is something like:
"What can you do to ensure you'll be on time more often?"

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Thank you, I’m out!