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 as well as 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, Marketing, etc. Definite as well as measurable objectives should endure fixed for each KRA. The fourth dimension restrain for achieving the objectives should too 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 yr 2010-2011.
Stage 2. Collectively making a plan
After fixing the objective, the superior as well as subordinate managers brand an activity plan. This innovation volition endure used yesteryear the subordinate director to hand the objective.
Stage 3. Subordinates implements the plan
The subordinate director implements the plan. That is, he puts the innovation 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 finally 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 whatsoever deviations, thence the superior as well as subordinates managers create novel objectives. In this stage, the superior acts similar a jitney as well as guide. He does non deed similar a judge.
