Section Fourdeserving of increased compensation, promotions, recognition,
and the like. Further, they are all potentially valid sources of
guidance for future developmental efforts, although they differ
in their appropriateness in this regard.
Performance Measurement Approaches
A number of evaluation approaches have been traditionally
used for performance measurement. Some of the most
common are management by objectives, graphic rating scales,
and narratives. The most advanced performance evaluation
systems are those utilizing behaviorally anchored rating scales.
These approaches will be discussed in the following section,
beginning with management by objectives.
Management by Objectives
Management by objectives (MBO) is a widely used performance
evaluation approach. In the case of MBO, the linkage with the
implementation of strategies is easy to establish because the
objectives can be specified as outcomes or milestones in the
strategy implementation process. MBO typically begins with an
initial phase in which the subordinate generates goals or
objectives to be accomplished over the next time period. As a
part of this process, the subordinate specifies the measures by
which accomplishment of such objectives will be determined
and outlines action plans he or she will use to achieve these