Management by Objective (MBO)

MBO is a process that converts organizational objectives in to individual objectives.

Steps of Management by Objective (MBO)

1. Goal Setting: Generally supervisor & subordinates work together to establish goals.

2. Action Planning: Means are determined to achieve ends.This step includes identifying the activities necessary to accomplish the objectives, establishing the relationship between these activities, estimating time requirement and determining the resources required to complete each task.

3. Self Control: Subordinate themselves systematically monitor, measure and review their own performance.

4. Periodic Review: The actual level of goal attainment is compared with the goals agreed upon. The evaluator explores reasons for goal that were not met and for the goals that were exceeded. Necessary corrective actions are taken. These reviews should take place at least two to three times a year.