ACCA Applied Knowledge · Business and Technology · Review and appraisal of individual performance
In a management by objectives (MBO) appraisal system, which feature is most characteristic?
In MBO, the manager and employee agree objectives together and the employee's performance is later reviewed against those agreed targets. It is not based on imposed targets, personality traits or ranking staff against each other.
- ATargets are set by senior management without consultation
- BPerformance is judged mainly on personality traits
- CEmployees are ranked against one another from best to worst
- DObjectives are agreed between manager and employee and performance is reviewed against themCorrect
Explanation
MBO relies on jointly agreed, measurable objectives, with appraisal comparing results against them. Imposed targets, trait rating and forced ranking are features of other approaches.
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