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ریست ●

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ملسو هيلع هللا ىلصبطِ وبنی ●

ہفسلف ●

ایسفنت ●

امسایجت ●

It is a system whereby supervisors/managers and employees

define goals for every department, project, and person and use

them to monitor subsequent performance.

A model of the essential steps of the MBO system;

Four major activities make MBO successful

1. Set goals.

2. Develop action plans.

3. Review progress

4. Appraise overall performance.

Selected by : Nazish Qasim

براۓ معلومات و تعقیب

رفاہ انٹرنیشنل یونیورسٹی

المیزان کمپلیکس

پشاور روڈ، راولپنڈی، پاکستان 274

HR Department

tameer.emag@riphah.edu.pk

Tel: 92 51 5125162-7, Ext-231

UAN: 92 51 111 510 510

For Information & Feedback

3. Review progress. A periodic progress review is important to ensure that action plans are working. Key

Performance Indicators (KPIs) often provide the data for the review. These reviews can occur informally

between managers and subordinates, where the organization may wish to conduct three-, six-, or nine-month

reviews during the year. This periodic checkup allows managers and employees to see whether they are on

target or whether corrective action is needed. Managers and employees should not be locked into predefined

behavior and

must be willing to take whatever steps are necessary to produce meaningful results. The point of MBO is to

achieve goals. The action plan can be changed whenever goals are not being met.

4. Appraise overall performance. The final step in MBO is to evaluate whether annual goals have been

achieved for both individuals and departments. Success or failure to achieve goals can become part of the

performance appraisal system and the designation of salary increases and other rewards. The appraisal of

departmental and overall corporate performance shapes goals for the next year. The MBO cycle repeats itself

annually.

Corporate goals are more likely to be achieved when manager and employee efforts are focused on them.

Using a performance measurement system such as MBO helps employees see how their jobs and

performance contribute to the business, giving them a sense of ownership and commitment. Performance is

improved when employees are committed to attaining the goal, are motivated because they help decide what

is expected, and are free to be resourceful. Goals at lower levels are aligned with and enable the attainment

of goals at top management levels.

1. Set goals. Setting goals involves employees at all levels and looks beyond day-to-day activities to answer

the question, “What are we trying to accomplish?” Managers heed the criteria of effective goals described in

the previous section and make sure to assign responsibility for goal accomplishment. However, goals should

be derived jointly. Mutual agreement between employee and supervisor creates the strongest commitment to

achieving goals. In the case of teams, all team members may participate

in setting goals.

2. Develop action plans. An action plan defines the course of action needed to achieve the stated goals.

Action plans are made for both individuals and departments.

Reference: Article is taken from Book “Management” 12 Edition by Richard L Daft Vanderbilt University

Benefits of MBO