The Result Approach

The Result Approach:

Ø  Focuses on managing the objectives, measurable results of job or work group.

Ø  This approach assumes that subjectivity can be eliminated from the measurement process and that results are the closest indicator of one’s contribution to organizational effectiveness.

Management by Objectives (MBO):

Ø  In organizations where MBO is used to set goals and objectives for employees, the supervisor will use this approach for performance appraisal also.

Ø  The appraisal is based on whether or not the employee has met his or her objectives.

Ø  The advantage is that employees know what to expect.

The supervisor focuses on results rather than more subjective criteria.

Result Approach:

Advantages:

Ø  Minimizing Subjectivity

Ø  Relying on objectives, quantifiable indicators of performances.

Ø  Links an individual’s result with organizational strategies and goals.

Disadvantages:

Ø  Objective measurements are affected by the things that are not under the employee’s control, e.g. economic recession.

Ø  Individual may focus only on aspects of their performance those are measured, neglecting those are not.

Ø  Objective feedback may not help employee to learn how they need to change the behavior to increase their performances.

The Quality Approach:

Ø  Two fundamental characteristics of the quality approach are:

o   Customer Orientation

o   Prevention approach to errors.

Ø  Improving customer satisfaction is the primary goal of the quality approach.

Ø  Customer can be internal or external to organization.

The Quality Approach:

Ø  Emphasize an assessment of both person and system factors in the measurement system.

Ø  Emphasize that managers and employees work together to solve performance problems.

Ø  Involves both internal and external customers in setting standards and measuring performances.

Ø  Use multiple sources to evaluate person and system factors.

Ø  Statistical process control techniques are very important in the quality approach e.g. process-flow analysis, cause and effect analysis, Pareto chart, control charts, histograms and scatter grams.