2. Process of defining objectives within an organization
– Systematic and organized approach
– Allows management to focus on achievable goals
– Allows management to attain the best possible results from
available resources
Key features:
– Goal setting
– Choosing course of action
– Decision making
Aim: to increase organizational performance by aligning goals
and subordinate objectives throughout the organization
– Employees more likely to fulfill their responsibilities when
they are actively involved in defining objectives
Incentives linked with results
12/23/2015
The MBO Concept
Is it specific? Does it clearly talk about one thing, and both the staff member and the supervisor know exactly what output they are talking about.
Is it measurable? Can the output be quantified?
Is it appropriate? Does the staff member have the power to accomplish the task? Will it work?
Is it realistic? Based upon experience and data, can the output be achieved in the allotted time with a given amount of resources?
Is it time-bound? Is a specific, reasonable amount of time specified to accomplish each objective?
