Management by Objectives (MBO) Based Approach to Performance Evaluation. Performance objectives primarily based on desired results, or outputs, rather than inputs, which are work attitudes/attributes – should be quantified wherever possible – as unique to each employee as possible
– should be quantified wherever possible
– as unique to each employee as possible
– should comprise 60% to 80% of employee performance plan
– should be as standard as possible for most employees
– should comprise 20% to 40% of employee performance plan
– Varying weights assigned to each performance objective or attitude/attribute within each area
– In its best and truest sense, performance evaluation should be ongoing and
continuous, with employees getting direct feedback along the way.
– Direct reports objectives should be linked to the President’s performance
– Their reports linked to their own objectives, and similarly, from level to level.
– This process is known as “linkage of objectives”.
– Underlying theory is that if each employee achieves his or her performance
objectives, the institution achieves its overall objectives.
– ensure resulting appraisal distributions are fair and balanced with no patterns
of invidious distinctions based on race, gender, or religion, and that individuals
do not suffer due to evaluations by unduly “hard” or “easy” graders
– “earned” pay given to employees based on relative performance in the compensation pay period
– can be for either external or internal equity
– can be to offset inflation or increases in employee benefit costs
– one-time payments given because of especially meritorious individual or work group performance
RatingSample % Distribution
Consistently Exceeds Expectations 20 to 25%
Exceeds Expectations 30 to 35%
Meets Expectations 39 to 25%
Does Not Meet Expectations 1 to 5%
– No employee should be paid below the minimum for his or her job range.
– external funding sources, such as the legislature, or
–internal funding sources, such as increased enrollment and/or decreased costs.
– proposed ratings
– affordability of resulting compensation results
– planned appraisal distribution
– funding commitments