Model of the MBO Process

1
Model of the MBO Process
Step 2 Developing Action Plans
Step 1 Setting Goals
?Corporate Strategic Goals
?Departmental Goals
?Individual Goals
Action Plans
Review Progress
Step 3 Reviewing Progress
Corrective Action
Appraisal of Overall Performance
Step 4 Appraising Overall Performance
2
Human Relations
MBO Benefits and Problems
Benefits of MBO
Problems with MBO
1. Constant change prevents MBO from taking hold.
1. Manager and employee efforts are focused on
activities that will lead to goal attainment.
2. An environment of poor employer-employee
relations reduces MBO effectiveness.
2. Performance can be improved at all company
levels.
3. Strategic goals may be displaced by
operational goals.
3. Employees are motivated
4. Mechanistic organizations and values that
discourage participation can harm the MBO process.
4. Departmental and individual goals are aligned
with company goals.
5. Too much paperwork saps MBO energy.