Model of the mbo process
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This document outlines the model of the management by objectives (MBO) process and discusses its benefits and problems. The MBO process involves 4 steps: 1) setting goals at the corporate, departmental, and individual levels; 2) developing action plans; 3) reviewing progress; and 4) appraising overall performance. Benefits include focused efforts, improved performance at all levels, and alignment of goals. Problems include inability to take hold due to constant change, reduced effectiveness in poor work environments, displacement of strategic goals by operational goals, and harm from non-participative organizations.
Model of the mbo process
- 1. Model of the MBO ProcessModel of the MBO Process Step 1: Setting GoalsStep 1: Setting Goals Step 2: Developing Action PlansStep 2: Developing Action Plans Step 3:Step 3: Reviewing ProgressReviewing Progress Corporate Strategic GoalsCorporate Strategic Goals DepartmentalDepartmental GoalsGoals Individual GoalsIndividual Goals Step 4: Appraising OverallStep 4: Appraising Overall PerformancePerformance Appraisal of Overall PerformanceAppraisal of Overall Performance Corrective ActionCorrective Action Review ProgressReview Progress Action PlansAction Plans
- 2. MBO Benefits and ProblemsMBO Benefits and Problems Benefits of MBOBenefits of MBO Problems with MBOProblems with MBO 1. Manager and employee efforts1. Manager and employee efforts are focused on activities thatare focused on activities that will lead to goal attainment.will lead to goal attainment. 2. Performance can be improved2. Performance can be improved at all company levels.at all company levels. 3. Employees are motivated3. Employees are motivated 4. Departmental and individual4. Departmental and individual goals are aligned with companygoals are aligned with company goals.goals. 1. Constant change prevents MBO1. Constant change prevents MBO from taking hold.from taking hold. 2. An environment of poor employer-2. An environment of poor employer- employee relations reduces MBOemployee relations reduces MBO effectiveness.effectiveness. 3. Strategic goals may be displaced by3. Strategic goals may be displaced by operational goals.operational goals. 4. Mechanistic organizations and4. Mechanistic organizations and values that discouragevalues that discourage participation can harm the MBOparticipation can harm the MBO process.process. 5. Too much paperwork saps MBO5. Too much paperwork saps MBO energy.energy. Human RelationsHuman Relations