is a system by which employees jointly determine specific performance objectives with their supervisors, progress is periodically reviewed, and rewards allocated on that basis.

Goal setting

Explanation: Goal Setting is a method of concluding on what an individual wants to achieve and then carefully thinking a strategy to accomplish those expected outcomes. However, this is an essential aspect of company planning and rewards are usually given on the purpose. There are some conditions that affect goal setting hence considered when undergoing the process.

Management by objectives

Explanation:

Management by objectives (MBO) is a management approach developed by Peter Drucker in 1954 that emphasizes on increasing performance and efficiency. Managers and employees work together to set performance objectives, and employees must commit to achieving or surpassing them.

This technique has proven to increase employees' efficiency and performance since employees value having a say in goal setting. It also improves communication between the manager and the employees. It is a form of employee empowerment.

Independent research studies carried out by the Journal of Psychology have determined that MBO increases organizational performance by 10% in the areas where it has been applied.

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