Chapter 7, Problem 4DQ

Summary Introduction

To determine:

The method of balance emphasize goals (ends) and methods (means).

Introduction:

Management by objectives (MBO) is a management system which provides clear objectives for each part of the business. MBO focuses on setting the goals for each employee, department and then evaluation of performance on the basis of objectives. MBO is applied in a well-structured phase as follows:

• Formulation of Objectives:

  The departmental/ team goals are set and responsibilities are given to individuals.

• Development of action plan:

  Action plan clears the actions to be performed to achieve the goals.

• Review and Control:

  The arrangement of regular reviews and monitoring to ensure the progress of plans.

• Performance Appraisal:

  Performance Appraisals are done at the end of the particular period to evaluate the performance and setting the next period standards.