what is evaluation by objectives?
Evaluation by objectives is a performance appraisal method that involves setting specific goals and objectives for employees and then assessing their performance based on their achievement of those objectives. It is a systematic approach where employees and their supervisors mutually agree upon the objectives to be accomplished within a certain period. The evaluation process focuses on the extent to which employees have accomplished their objectives rather than on subjective judgments or comparisons.
To implement evaluation by objectives, here are the steps typically followed:
1. Establish objectives: Managers and employees collaborate to define clear and specific objectives for each employee or team. Objectives should be SMART (specific, measurable, achievable, relevant, and time-bound) and aligned with organizational goals.
2. Regular feedback: Throughout the evaluation period, managers provide regular feedback to employees regarding their progress and performance. This helps employees stay on track and make necessary adjustments to achieve their objectives.
3. Self-assessment: Employees are given the opportunity to evaluate themselves based on their performance against the agreed-upon objectives. This self-assessment helps provide insights into their perception of their own performance.
4. Evaluation meeting: At the end of the evaluation period, managers conduct a formal evaluation meeting with each employee to discuss performance. They compare the actual results achieved with the objectives set and provide feedback on the employee's strengths and areas for improvement.
5. Performance rating: Based on the evaluation, the employee's performance is rated, typically using a scale or rating system. The ratings help determine the employee's overall performance and may have an impact on promotions, rewards, or development opportunities.
Evaluation by objectives is an effective approach as it aligns employee performance with organizational goals and fosters a transparent and goal-oriented work culture. It encourages employee motivation, provides clarity on expectations, and promotes continuous improvement.