Final answer:
MBO provides specific, personal performance objectives for an employee, facilitating measurable and personal goal setting. While it doesn't directly lead to increased monetary compensation, it can indirectly influence professional growth and salary benefits through performance evaluations.
Step-by-step explanation:
For the individual employee, Management by Objectives (MBO) provides specific, personal performance objectives. This method centers on measurable and motivational goals, allowing employees to understand what is expected of them and how their contributions align with the overall objectives of the organization. MBO does not directly guarantee increased monetary compensation, but it may help employees showcase their performance which could be a basis for discussing raises. Furthermore, it enhances professional relations through clear communication of expectations and recognition of achievements, which can lead to improved performance, potentially affecting profits and earnings distribution.Performance appraisals, including the MBO approach, are intricate processes that assess job performance, motivate employees for improvement, and identify training and development opportunities. These appraisals may be followed by discussions relating to salary and benefits, growth and development, and career advancement, thereby indirectly influencing the monetary and professional growth aspects of an employee's career.