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MOTIVATION THROUGH MBO AND PERFORMANCE APPRAISAL SATURDAY, December 26, 09
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Page 1: Chap 11

MOTIVATION THROUGH MBO AND PERFORMANCE APPRAISAL

SATURDAY, December 26, 09

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Motivation

Motivation is getting others to do something because they want to do it.

The process which encourages and guides behavior.

The act or process of stimulating to action, providing an incentive or motive, especially for an act.

Motivation is the internal drive to accomplish a particular goal. In a work setting, motivation is what makes people want to work.

Motivation: Goal directed behavior

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IMPORTANT POINTS

Presentations on next class Submit all compensatory assignments Check the quiz sheet and discuss if

there are any issues No marks to the student, who does not

present the proof and does not deliver

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Course Outline

Sr. |Chap|Final Exam Chapter HeadingNo.|No. |Q. No.1. 1 1 An Introduction to Motivational Concept (260909)2. 2 2 Motivation in the History (101009)3. 3 3 Darwinian Theory of Evolution and Motivation

(171009)4. 4 4 Instinct and Motivation (311009)5. 5 5 The Effect of Frustration, Conflict and Stress (051109

& 071109)6. 6 6 Need Theories of Motivation (211109)7. 7 7 Reinforcement/Incentive Theories (051209)8. 8 8 Expectancy Theories of Motivation (171209)9. 9 9 Motivation, Satisfaction, and Performance (191209)10. 10 10 Motivation and Monetary Rewards (211209)11. 11 11 Motivation Thru MBO & Performance Appraisal

(261209)Marks Distribution:

Number of Quizzes attended + Midterm + Final assignment

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INTRODUCTION TO MBO Motivation is a goal directed behavior

Goal setting can serve as a force for releasing human motivation

The employee’s basic needs, the internal motivation i.e. their own motives should be kept into account before the introduction of MBO in an organization

MBO says employees own the tasks when they participate in the goal setting process

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INTRODUCTION TO MBO MBO: An approach for improving organizational

performance by aligning organizational, department, and personal goals and tracking achievement of those goals

MBO: A managerial process by which the supervisor and his subordinates jointly assess the accomplishment of their respective task goals

Or A special form of job enrichment which heavily

emphasizes the goal setting process, it operationalizes the major concepts of job enrichment i.e participation, goal setting, autonomy and group management. It also contains a result oriented performance appraisal system

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BENEFITS OF MBO The core of management theories is found in essence

in MBO functions such as it involves Planning, organizing, leading and controlling

In these theories goals are set by management MBO involves employee participation in goal setting. Goal-based management began in large corporations

(e.g. IBM, GM, NCR) in the 1920’s Many behavioral scientists such as (Cock and french

48, Follett 42, Mayo 45) emphasized on gaining their commitment to organizational goals

MBO first outlined by Peter Drucker in 1954 in his book 'The Practice of Management'.

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BENEFITS OF MBO Drucker suggested MBO as an integrative management tool He presented the MBO philosophy as a method which

integrates various sub units of an organization for achievement of the corporate objectives

MBO is a managerial tool which has sub effects: It’s a good planning and controlling tool It’s a method of developing objective performance criteria It’s a motivational and communicational tool It helps increasing productivity

In 1950s, Mc Gregor proposed a result oriented performance appraisal system

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BENEFITS OF MBO In USA, GE, Purex Corporation, Texas instruments

applied MBO in performance appraisal and reported positive results

1n 1960s and early 70s MBO was emphasized as a managerial tool for increasing employee motivation

The existing MBO process involves the establishment and execution of task goals , key performance responsibilities, action plans and performance reviews

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MBO LEADS TO BETTER RESOURCE UTILIZATION

Organizational resources are money, manpower, materials, and time

MBO forces good planning and minimizes the induction of crash programs, hence saves money

MBO helps utilization of resources towards the prior and critical tasks to achieve the best possible results

MBO helps employees to review their contributions towards organization’s goals and hence force them to modify those which are non contributory

Employees are self motivated to achieve their goals, they take ownership of. Hence they don’t need any close supervision

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NEXT CLASS

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HOW GOAL SETTING IMPROVES MOTIVATION

1. Goal specificity and its effects2. Goal difficulty3. Participative Goal Setting4. Performance Feedback

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IMPLEMENTING AND MANAGING MBO SYSTEM

1. Arrange goals in Means-Ends sequence2. Identify Key Responsibilities3. Assign priorities to Key responsibilities4. Define the expected outcomes of key responsibilities5. Assign specific tasks to Employees6. Define Authority and Responsibility relationships7. Develop Time Schedules8. Perform Individual Tasks and integrate them into

overall goals9. Undertake periodic performance process reviews10. Conduct Annual Performance review session

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A RESULT ORIENTED PERFORMANCE APPRAISAL SYSTEM

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PROBLEM OF MBO AND SOLUTIONS

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CONTINGENCY APPROACH TO MBO