Four Stages or Steps inward the MBO Process
Generally, at that topographic point are 4 stages or steps inward the blogspot.com//search?q=management-by-objectives-mbo-peter">MBO process.
Stage 1. Collectively fixing objectives
The superior in addition to 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 in addition to measurable objectives should travel fixed for each KRA. The fourth dimension boundary for achieving the objectives should likewise travel fixed. The objectives should travel achieved past times the subordinate manager.
For e.g. The objective for the marketing managers may travel to growth the sales of production XYZ past times 50% for the twelvemonth 2010-2011.
Stage 2. Collectively making a plan
After fixing the objective, the superior in addition to subordinate managers brand an activity plan. This innovation volition travel used past times 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 innovation to action. He makes optimum operate of the resources. If required, he takes guidance from the superior managers.
Stage 4. Collectively monitoring performance
This is the in conclusion phase inward the MBO process. Here, the subordinate monitors (evaluates or measures) his ain performance. He compares his functioning alongside the planned targets (objectives). If at that topographic point are whatsoever deviations, hence the superior in addition to subordinates managers create novel objectives. In this stage, the superior acts similar a double-decker in addition to guide. He does non human activity similar a judge.
