It was Peter F. Drucker who first gave the concept of MBO to the world way back in 1954. To avoid, or to deal with, the feeling that they are being judged by unfairly high standards, employees in some organization are being asked to set- or help set-their own performance goals.
Within the past five or six years, MBO has become something of a fad and is so familiar to most managers that I will not dwell on it here.
It should be noted, however, that when MBO is applied at lower organizational levels, employees do not always want to be involved in their own goal setting.
MBO can be described in four steps:
The first step is to establish the goal each subordinate has to attain.
The second step involves setting the performance standard for the subordinates in a previously arranged time period.
In the third step, the actual level of goal attainment is compared with the goals agreed upon. The evaluators explore reasons or the goals that were not met and for the goals that were exceeded. This step help determining possible training needs.
The final step involves establishing new goals and possibly, new strategies for goals not previously attained. Subordinates who successfully reach the established goals may be allowed to participate more in the goal setting process the next time. The process is repeated.
Within the past five or six years, MBO has become something of a fad and is so familiar to most managers that I will not dwell on it here.
It should be noted, however, that when MBO is applied at lower organizational levels, employees do not always want to be involved in their own goal setting.
MBO can be described in four steps:
The first step is to establish the goal each subordinate has to attain.
The second step involves setting the performance standard for the subordinates in a previously arranged time period.
In the third step, the actual level of goal attainment is compared with the goals agreed upon. The evaluators explore reasons or the goals that were not met and for the goals that were exceeded. This step help determining possible training needs.
The final step involves establishing new goals and possibly, new strategies for goals not previously attained. Subordinates who successfully reach the established goals may be allowed to participate more in the goal setting process the next time. The process is repeated.