Girmma is a marketing manager for an Organization. The main accountability of Girmma and his team of two staff are to identify sources of new business and to promote the company in these markets. In 2019, the company introduced a new performance appraisal system using the MBO method. 

Girmma has been performing well under this system; although he has been concerned that the evidence base used by his manager in drawing conclusions about performance has tended to cover the two or three month period before the actual date of appraisal. Earlier evidence of high performance has tended to be overlooked. 

Girmma is uncomfortable about this, but he has not raised this with his manager. Girmma's manager has proposed that, from the 2020 cycle, almost half of Girmma's salary should be linked to the volume of new business that the company gets each year. Girmma has been asked to think this over and prepare a response. 
Leading Questions

1.What advice would you give Girmma regarding the proposal put by his manager,

2.Should he do anything at all about his concerns regarding the way the performance appraisal system is being used by his managerl 
 

Answer:

1. What advice would you give Girmma regarding the proposal put by his manager?

• I will advice to her to talk to his manager to delay the use of the MBO or management by objective performance appraisal and to to implemented on the next rating period because the evidence based use by the manager in drawing conclusion about performance has tended to cover the two or three month period before the date of appraisal and the earlier evidence of high performance has tended to be overlooked. If they will going to apply the performance appraisal strategy during the present time it will cause the employee to demotivate because their previous effort will become useless. The management should consider that in performance evaluation the management should already communicate the mission of the organization to the employees. It can also be a great opportunity to talk about the goals, plans, and vision of the company as well before the start of the rating period so that the employee will be guided on what kind of the performance they need to possess.
• In MBO implementation the management should present first the  organization's vision, values, strategies, goals, and performance measurement.
• Therefore, to prevent the existence of the problem, Girmma should talk to his manager and present the consequences once they will implement the Management by Objectives performance appraisal.

2.Should he do anything at all about his concerns regarding the performance appraisal system used being used by the manager?

• Yes, she should explain well to his manager the consequences just in case they will implement it. Girmma should explain to his manager that MBO begins with managers at the top of the company setting goals. Then managers and employees at each successively lower level develop their own goals. Employees' goals are designed to support the goals of their own managers. In this way, the entire organization is linked together in the pursuit of objectives.
• The employees should meet their managers in establishing the goals and action plans of the organization. Each employee should return to work newly energized and focused on specific short-term and longer-term targets. Simultaneously, their managers monitor the employees' performance, provide coaching and support, remove barriers or help employees overcome them, and make adjustments and course corrections as necessary. The employees' performance and progress are clear, measured, documented, and transparent every step of the way.

"The focus is on outcomes that are clear, specific, measurable, and supported by action plans, benchmark dates, and deadlines. All aspects of the goal-setting process also apply to the employees' personal and developmental goals, such as building their skills or knowledge base." Source: https://www.dummies.com/business/human-resources/employee-relations/performance-appraisal-technique-managing-by-objectives/