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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.

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model of the mbo process
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

slide2

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.