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Management by objective
MBO
Goal-Setting Theory





Many believe that everyone already
sets goals
But this is not true
When groups do set goals, o...
Goal setting and incentives



Incentives improve performance – but
Only if they cause individuals to set and
commit to ...
Why does goal setting effect
performance?






Goals focus activity
Goals regulate expenditure of effort
Difficult go...
What is MBO?






We set goals and then performance is
judged based on how well we
accomplish these goals.
Intellectua...
The goals must be:






Mutually agreeable to employee and
supervisor
Demanding (stretching) but achievable
Within th...
The goals must also be:




Clearly defined
Simple to understand
Written
Problems with MBO programs




Employees get systematically more
credit or blame than deserved
Bias still exist in ratin...
The end
The end
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Mbo

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Mbo

  1. 1. Management by objective MBO
  2. 2. Goal-Setting Theory    Many believe that everyone already sets goals But this is not true When groups do set goals, output invariably increases over groups that do not set goals.
  3. 3. Goal setting and incentives   Incentives improve performance – but Only if they cause individuals to set and commit to attaining specific goals
  4. 4. Why does goal setting effect performance?     Goals focus activity Goals regulate expenditure of effort Difficult goals lead to more persistent effort than do easy goals These 3 are critical to the MBO process
  5. 5. What is MBO?    We set goals and then performance is judged based on how well we accomplish these goals. Intellectually – this seems like the way to go – and has for years But?
  6. 6. The goals must be:     Mutually agreeable to employee and supervisor Demanding (stretching) but achievable Within the control of the employee Reviewed periodically for modifications based on events
  7. 7. The goals must also be:    Clearly defined Simple to understand Written
  8. 8. Problems with MBO programs   Employees get systematically more credit or blame than deserved Bias still exist in rating.
  9. 9. The end
  10. 10. The end

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