MBO program Essay Example | Topics and Well Written Essays - 500 words

MBO program - Essay Example Employees are also made to understand how their individual contributions influence overall success of business objectives. Drucker and other management experts have identified six steps in the MBO process. The first step is Motivation, whereby employee's inputs are considered and respected in setting goals for each individual. The keywords during this step are 'empowerment', 'job satisfaction' and 'commitment'. By involving themselves directly in the goal setting process, it is believed that employees will show more commitment to the success of the organization. The next step of the process is about ensuring that proper communication and coordination exists between managers and employees so that performance reviews are conducted in an open and transparent manner. By making the goals clear both management and workers can be expected to be on the same page. The six steps involved in MBO can be summarized as follows: Setting the overall business goals; Setting goals pertaining to depart ments within; Deliberating within departments in order to achieve a consensus; Agreeing upon commonly understood and discussed goals; Setting goals for individual employees; and finally Monitoring performance against set goals.