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Model of the MBO Process

Model of the MBO Process. Step 2: Developing Action Plans. Step 1: Setting Goals.  Corporate Strategic Goals Departmental Goals Individual Goals. Action Plans. Review Progress. Step 3: Reviewing Progress. Corrective Action.

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Model of the MBO Process

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  1. Model of the MBO Process Step 2: Developing Action Plans Step 1: Setting Goals Corporate Strategic Goals Departmental Goals Individual Goals Action Plans Review Progress Step 3: Reviewing Progress Corrective Action Appraisal of Overall Performance Step 4: Appraising Overall Performance

  2. Human Relations MBO Benefits and Problems Benefits of MBO Problems with MBO 1. Constant change prevents MBO from taking hold. 1. Manager and employee efforts are focused on activities that will lead to goal attainment. 2. An environment of poor employer-employee relations reduces MBO effectiveness. 2. Performance can be improved at all company levels. 3. Strategic goals may be displaced by operational goals. 3. Employees are motivated 4. Mechanistic organizations and values that discourage participation can harm the MBO process. 4. Departmental and individual goals are aligned with company goals. 5. Too much paperwork saps MBO energy.

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