The most common form of employee performance appraisal is management by objectives, in which employees and their managers set goals together for the upcoming period and then measure the degree to which the employee achieved the goals.
This method provides unambiguous criteria that are not susceptible to biases. However, if improperly managed it also can lead to a mentality of “results at any cost” or not reflect on-the-job problem solving. Guidelines How to reach an agreement on the Employee Performance Objectives How to forecast Employee Activities in accordance to the Employee Performance Objectives.
A management by objectives is centred to what is being produced and delivered, rather than on what tasks have been performed. Therefore it leaves a margin of responsibility to the employer to plan how to produce the expected outputs and achieve the project objectives. However the "how" to achieve should be consistent with the organizational culture and with the basic requirement of fostering a healthy communication climate.
Agreed performance objectives will form the basis for planning the employee activities and for reviewing the employee performance.
See also Varieties of performance review: Immediate-supervisor, Self-review, Peer review Subordinate review , Appraisal by beneficiaries, 360º performance appraisals.
See examples of employee performance objectives for different categories of employees:
Templates: Project Execution, Control and Closure Checklist Programme Execution, Control and Closure Checklist