Establishing Goals: The first step in an MBO programme is the establishment of clear and concise goals of performance which are understood and accepted by both superior and subordinate. Initially, the superior determines his objectives and general programme.

Management by Objectives (MBO) is a strategic approach to enhance the performance of an organization. It is a process where the goals of the organization are defined and conveyed by the management to the members of the organization. Organizational structures with the intention to achieve each objective.

The 6 steps of the MBO process are;

1. Define organizational goals.
2. Define employees objectives.
3. Continuous monitoring performance and progress.
4. Performance evaluation.
5. Providing feedback.
6. Performance appraisal.

MBO is the process of defining top company goals and using them to determine employees’ objectives. It allows companies to express their individuality as well as their top priorities and, most important, to execute on them.

4 Common Ingredients of an MBO Program are;

• Goal specificity,
• Participative decision making,
• An explicit time period, and.
• Performance feedback.

Management by objectives (MBO) is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.

The 6 steps of the MBO process are; Define organizational goals. Define employees objectives. Continuous monitoring performance and progress. Performance evaluation. Providing feedback. Performance appraisal. Let’s briefly look at each of these;

What is Management by Objectives (MBO)? Management by Objectives (MBO) is a strategic approach to enhance the performance of an organization. It is a process where the goals of the organization are defined and conveyed by the management to the members of the organization.

Designing a sound organizational structure with clear, responsibilities and decision-making authority at the appropriate level. Under this MBO process performance review is made by the participation of the concerned managers.

MBO is used to plan goals for the employees through their own participation. The goals will act as motivational factor and help in increasing employee efficiency. The setting of goals is not a simple thing. It requires lot of thinking and planning. The setting of objectives requires following steps: