How Compensation is Improved by Evaluation Essay

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Employee Appraisal MethodAssessing and developing employee performance in organizations is crucial, and employers often use performance appraisal as a decision-making tool for this purpose (Sanyal & Biswas, 2014). There are two primary appraisal decision-making methods: cognitive-based appraisal and subjective-based appraisal (Ismail & Raduan, 2013). Cognitive-based appraisal emphasizes psychometric issues in evaluation, performance scores, and objective criteria to measure performance (Ismail et al., 2012). HR managers design methods such as comparison, rating, measuring results and attributes based on cognitive models to handle routine personnel management functions like selection, training, compensation, and career (Noe, Hollenbeck, Gerhart & Wright, 2013).Performance appraisal is essential to evaluating job-related strengths and weaknesses in an individual appraisee. This formalized and systematic process aims to encourage and reinforce strengths while identifying and redirecting marginal work habits to meet the organization’s objectives. The appraisal is a criterion variable that measures employees’ job performance at a particular period, as a job is a collection of tasks. The appraiser communicates objectively to the appraisee how they perform the job to establish a strategy of improvement using mentoring, counseling, training and development, retraining, or other remedial measures (Ugoani, 2020).The significance of performance appraisal goes beyond evaluating workers’ job performance, as it also highlights the organization’s specific objectives. As the employee undergoes evaluation, the organization also assesses its objectives and standards of performance, scrutinizing the entire appraisal framework and design, as well as its organizational values and culture. Performance appraisal is an invaluable tool for organizations to assess and enhance the quality of education and training for their workforce. It aims to advance lifelong learning strategies and patterns to maintain productivity over longer working periods. Motivation, linked to employee productivity, is frequently the driving force behind performance and self-actualization, offering possibilities for improved productivity. Productivity is a crucial measure of goal attainment since accomplishing more with fewer resources increases organizational profitability (Ugoani, 2020).MBO MethodManagement by Objectives (MBO) is a method to integrate organizational objectives with the individual needs of managers (e.g., income, payment, improvement) and convert organizational objectives into individual objectives. MBO emphasizes individuals’ contributions to broader organizational aims (Islamia et al., 2018). Performance management is a planned process consisting of five primary elements: agreement, measurement, feedback, positive reinforcement, and dialogue. It is concerned with measuring outcomes in the form of delivered performance compared to expectations expressed as objectives (management by objectives) (Islamia et al., 2018).AnalysisMBO is a crucial tool for managers to integrate organizational objectives with individual needs and convert them into individual objectives. The primary focus of MBO is on the contributions individuals make to the broader organizational aims. Performance management is a planned process consisting of five primary elements. The authors suggest that MBO is a strategic tool that enables managers to align employee objectives with organizational goals, resulting in improved performance, productivity, and outcomes for both individuals and the organization (Islamia et al., 2018).In our view, MBO is a process of strategically planning to harmonize managers’ aims with employees to reach the objectives introduced by the organization. It is a process that motivates employees to realize organizational objectives, enhance performance and productivity, and manage results. General results of MBO indicate that the purposes of the enterprise, as an organizing form, are reached by common people. This method often meets pre-arranged standards (Islamia et al., 2018).Impact of Goal-Setting on Employee SatisfactionThe relationship between setting objectives and task satisfaction is a well-established finding in management and organizational literature. Utilizing goal-setting techniques in a natural work environment can critically influence employee performance and satisfaction (Armstrong & Taylor, 2014). Goal theory postulates that individuals are more motivated and perform better when they have specific and challenging goals and when there is feedback on their performance. The participation of employees in goal setting is crucial to ensure agreement on setting higher goals.

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Difficult goals must be agreed upon, and their achievement should be reinforced by guidance and advice. Finally, feedback is crucial in maintaining motivation, particularly in achieving even higher goals.Goal theory highlights four mechanisms that connect goals to performance outcomes (Armstrong & Taylor, 2014). First, goals direct attention to priorities, ensuring that employees focus on critical tasks. Second, goals stimulate effort by challenging employees to exert their maximum effort toward accomplishing the desired outcome. Third, goals challenge individuals to bring their knowledge and skills to bear in increasing their chances of success. Fourth, the more challenging the goal, the more people will draw on their full repertoire of skills.Performance management emphasizes setting and agreeing on objectives against which performance can be measured and managed. Communicating objectives and setting clear goals for employees leads to successful accomplishment and enhances job satisfaction. Miles (2012) states that setting…

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…research.Models and Steps of Management by ObjectiveMBO is a process that occurs step by step to achieve successful performance appraisal. The literature presents various models for applying MBO, and it has survived as an effective managerial approach due to its growth and development (Islamia et al., 2018). One common model of MBO comprises four steps: goal setting, action planning, self-control, and periodic reviews. These steps include three processes: object formulation, execution process, and performance feedback. The combination of these processes has been shown to increase productivity. Weihrich (2000) proposed a model of MBO comprising seven elements: strategic planning, a hierarchy of objectives, setting objectives, planning for action, implementation of MBO, control, and appraisal, and subsystems of organizational and management development. The MBO process involves establishing goals and outcomes for each subordinate, setting performance standards, comparing actual goals with employee goals, and establishing new goals and strategies for goals not achieved in the previous year (Islamia et al., 2018).Effectiveness and Limitations of Management by ObjectiveMBO is an effective approach to performance evaluation; however, there are limitations to its use. The limitations of this study are due to budgetary constraints that prevented the researchers from contacting a large number of respondents and the fact that other performance appraisal methods are available. Future studies could focus on comparing MBO with other methods to determine the most effective method for employee performance evaluation. Additionally, future studies should examine the effectiveness of setting objectives in dynamic and static environments, combining short- and long-term objectives on task performance, and how MBO affects employee motivation and self-esteem. Finally, future research should gather data from different periods to better understand the dynamics of using human resource practices.ConclusionThe findings of this study offer recommendations for management to improve the effectiveness of performance appraisal processes and outcomes in organizations. To meet these objectives, management should encourage communication openness and participation in performance appraisal decisions to increase employee understanding and decrease misjudgments about performance appraisal politics. Additionally, managers should promote high-commitment practice cultures, such as low power distance, respect for different opinions and styles, sharing knowledge and experiences, aligning personal agendas with organizational and job goals, and handling conflicts using win-win situations (Ibrahim et al., 2016).It is important to note that performance appraisal methods, including MBO, should be implemented ethically and legally. Organizations must ensure their performance appraisal….....

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