Four Stages Or Steps Inwards The Mbo Process

Four Stages or Steps inwards the MBO Process

Generally, in that place are 4 stages or steps inwards the MBO process.

Stage 1. Collectively fixing objectives

The superior together with subordinate managers collectively ready the objectives. The objectives are fixed for the Key Result Areas (KRAs). KRAs are those areas which are rattling of import for the long-term success of the organisation. For e.g. R & D, Production, Finance, Marketing, etc. Definite together with measurable objectives should live fixed for each KRA. The fourth dimension trammel for achieving the objectives should likewise live fixed. The objectives should live achieved yesteryear the subordinate manager.

For e.g. The objective for the marketing managers may live to increase the sales of production XYZ yesteryear 50% for the twelvemonth 2010-2011.

Stage 2. Collectively making a plan

After fixing the objective, the superior together with subordinate managers brand an activity plan. This conception volition live used yesteryear the subordinate managing director to plow over the objective.

Stage 3. Subordinates implements the plan

The subordinate managing director implements the plan. That is, he puts the conception to action. He makes optimum purpose of the resources. If required, he takes guidance from the superior managers.

Stage 4. Collectively monitoring performance

This is the lastly phase inwards the MBO process. Here, the subordinate monitors (evaluates or measures) his ain performance. He compares his surgical physical care for amongst the planned targets (objectives). If in that place are whatever deviations, together with then the superior together with subordinates managers ready novel objectives. In this stage, the superior acts similar a autobus together with guide. He does non human activity similar a judge.