Management by Objective1

Management by Objective1 -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Management by Objectives (MBO) is a process in which a manager and an  employee agree upon a set of specific performance goals, or objectives,  and jointly develop a plan for reaching them. The objectives must be clear  and achievable, and the plan must include a time frame and evaluation  criteria. For example, a  salesperson  might set a goal of increasing  customer orders by 15 percent in dollar terms over the course of a year. MBO  is primarily used as a tool for strategic planning, employee motivation,  and performance enhancement. It is intended to improve communication  between employees and management, increase employee understanding  of company goals, focus employee efforts upon organizational objectives,  and provide a concrete link between pay and performance. An important  factor in an MBO system is its emphasis on the results achieved by  employees rather than the activities performed in their jobs. an MBO program should be part of a small business's overall system of 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Management by Objective1 -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online