Slide 9 of 9
Management By Objectives (MBO) is a performance appraisal and motivation system.
Managers identify specific results that an employee is expected to achieve in a given
amount of time. Usually, the manager consults with the employee to set the performance
goals and to create the action steps that will be necessary to achieve the goals.
Organizational Behavior Modification (OBM) is a process of establishing reinforcement
contingencies for desired work behaviors. Bonus and incentive plans are often part of an
I-O psychologists sometimes provide advice on the design of compensation systems. The
work being done, the type of employees, the nature of the environment all influence they
type of compensation that would be best for an organization. Similarly, I-O psychologists
help employers identify the criteria necessary to make fair and accurate decisions about
raises, promotions, and other rewards.