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.
Step 2: Developing Action Plans
Step 1: Setting Goals
Corporate Strategic Goals Departmental Goals Individual Goals
Appraisal of Overall Performance
Step 4: Appraising Overall Performance
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.