Which performance appraisal method emphasizes employee participation in the goal-setting process?

The method that emphasizes employee participation in the goal-setting process is Management by Objectives (MBO). This approach is centered around setting specific, measurable objectives collaboratively between the employee and their manager. The key aspect of MBO is that employees are not merely passive recipients of goals determined solely by their supervisors; instead, they actively engage in the process. This participation fosters a sense of ownership over the goals established, which can enhance motivation and commitment to achieving them.

In MBO, the focus is on aligning individual objectives with the overall goals of the organization. This alignment helps ensure that employees understand how their contributions impact broader company objectives. By involving employees in the goal-setting process, MBO encourages open communication and collaboration, leading to more realistic and attainable targets.

Other methods mentioned do not prioritize this participative aspect. For instance, behavioral appraisals focus more on how employees exhibit specific behaviors in their roles, while top-down assessments typically involve decisions made by management without significant input from employees. Peer reviews involve feedback from colleagues but do not emphasize goal-setting in the same collaborative and structured manner as MBO does.