Four Stages or Steps inwards the MBO Process
Generally, in that place are 4 stages or steps inwards the blogspot.com//search?q=management-by-objectives-mbo-peter">MBO process.
Stage 1. Collectively fixing objectives
The superior together with subordinate managers collectively create the objectives. The objectives are fixed for the Key Result Areas (KRAs). KRAs are those areas which are real of import for the long-term success of the organisation. For e.g. R & D, Production, Finance, blogspot.com//search?q=management-by-objectives-mbo-peter">Marketing, etc. Definite together with measurable objectives should endure fixed for each KRA. The fourth dimension boundary for achieving the objectives should likewise endure fixed. The objectives should endure achieved yesteryear the subordinate manager.
For e.g. The objective for the marketing managers may endure to growth 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 activeness plan. This conception volition endure used yesteryear the subordinate managing director to attain 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 in conclusion phase inwards the MBO process. Here, the subordinate monitors (evaluates or measures) his ain performance. He compares his functioning alongside the planned targets (objectives). If in that place are whatever deviations, together with hence the superior together with subordinates managers create novel objectives. In this stage, the superior acts similar a omnibus together with guide. He does non human activeness similar a judge.
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