Why is it necessary to appraise a manager’s performance regularly?

To determine whether a manager was properly appointed and should be promoted requires regular appraisal of his or her performance.

Explain the chief advantage and disadvantages of using MBO for such appraisals

MBO offers a systematic method of obtaining such appraisals, although the primary purpose of MBO is to advance the attainment of organization objectives, rather then to judge managers. The principal risk in appraising a manager through MBO is that success or failure in reaching objectives may always be due to other causes then the manager’s performance.

Compare appraisals based on personal characteristics with those based on managerial tasks performed.

Therefore, the manager’s job of managing should itself be broken down into components and evaluated by the immediate superior, as objectively as possible, according to predetermined standards. Such evaluations based on actual work done are more useful than ones based on vague personal characteristics, such as cooperativeness and leadership.

Explain three reasons dor the importance of complete evaluations of managers

It is important for superiors to make through appraisals of their subordinates’ performance, so that (a) any defects may be reduced through further training, (b) salaries can be adjusted fairly, and (c) promotions can be made wisely.

 

MBO

What is connection between Theory Y and MBO?

According 2 “Theory Y”, managers at every level must have a part in setting objectives for themselves, so that they will have a sense of responsibilities for achieving these aims. Such a system is called Management by Objectives or MBO

2. What is the 1^st step in MBO?

As the first step in MBO, a manager at any level meets with his or her immediate superior to agree on specific goals which the subordinate manager will try 2 reach during a certain period of time.

What does the length of the MBO period depend on?

This length of period depends on manager’s position. For a relatively high-level manager, this period might be a year; for a lower-level supervisor, it could be only a few weeks.

Who sets a manager’s objection in MBO?

The superior helps the subordinate set objectives that harmonize with the organization’s overall goals.

What kinds of objectives are needed?

Objectives that harmonize with the organization’s overall goals and aren’t too difficult to attain. The mutually agreed objectives are then recorded.

How are a subordinate’s objectives related to those of a superior?

The goals of each subordinate manager represent a part of goals of his or her superior, which are broader and less detailed

Who controls the subordinate manager’s progress during the agreed period?

The superior will probably continue to give the subordinate advice and assistance through periodic reviews during the period but the subordinate will largely control his or her own progress

What other help does the subordinate manager gets?

The superior will probably continue to give the subordinate advice and assistance through periodic reviews during the period.

What qualities should objectives have in order to make them verifiable?

Goals can be verified later, they must be specific and should, if possible, be quantitative.

Give an example

For example, an objective should be not simply to increase profit but to obtain earnings after taxes of 15% on total assets during the coming year, with details on how this will be accomplished. Another objective could be to reduce scrap in a certain manufacturing process from 3% to 2.5% by December 31.

How can qualitative objectives be made verifiable?

Some goals are basically qualitative rather than quantitative, but even these can be made easier to verify by specifying details and time limits.

Give an example

Instead of saying that an objective is to improve communications, a manager might agree to improve internal communications by putting out a monthly newsletter, starting October 15, and by holding weekly staff meetings after that date.