Management by Objective1

Management by Objective1 - (MBO) ,orobjectives ....

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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 
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This note was uploaded on 06/17/2011 for the course ECON 101 taught by Professor Dicko during the Spring '11 term at Imperial College.

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Management by Objective1 - (MBO) ,orobjectives ....

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