This is an audio recording summarizing the American Management Association’s audio book, “Managing By Objectives.” This is the seventh chapter of the book entitled “MBO and the Performance Review.” The narrator begins by describing how performance appraisals are not always accurate. He talks about how a good review must be based solely on performance and not on emotions. He lists the components of a good appraisal system: one that is motivating for employees, identifies promotions, simple and flexible, and forecasts expectations. He describes how managers must have a pre-existing list of employee expectations before an evaluation. He ends the tape by saying that an MBO system must be concerned with the results of an employee rather than on an individual’s potential.
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