Elaborate upon the process, benefits and methods of performance appraisal systems in organisations.

Organizations use a variety of methods for evaluating employee performance. There are so many types of performance management methods, understanding how each of them works will help determine the best one to use within your organization. Each type has benefits and drawbacks; however, an assessment of your work force, management style and business environment will make the decision easier for you.

Management by Objectives

Management by objectives, or MBOs, is a type of performance management system that requires the manager and employee to identify employee goals as they relate to the overall business. For example, a sales representative's objectives may include increasing revenue by 25 percent in 12 months. The employee determines how best to achieve this goal and establishes a timeline for the tasks she needs to accomplish to increase revenue: improve sales and decrease costs. Often, MBOs track progress on a quarterly basis, which ____ ________ ___ ___ ________ _____ __________ ________ __________.
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