How entire programme of MBO is divided

Explain, how the entire programme of MBO is divided?

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1. Setting up of goal-In goal setting superior and subordinate together set certain goals, i.e the expected outcome that each employee is supposed to achieve.

2 In action planning, the manner in which goals could be achieved is determined i.e. identifying the activities which are necessary to perform; to achieve predetermined goals or standards. When the employees start with their activities, they come to know what is to be done, what has been done, and what remains to be done and it also gives an idea about the resources to be achieved.

3 In the third step, the goals set by the individual employee are compared with the actual goals achieved. It gives an idea to the evaluator as why there is a variation in desired outcome and actual outcome .Such a comparison helps create need for training so as to enhance employees’ performance.

4. Finally, in the timely review step, corrective actions are taken so that actual performances do not deviates from standards established in beginning. The main reason for conducting reviews is not to humiliate the performer but to assist him in better performances in future.

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