MBO

MBO or Management by Objectives is one of the techniques which can be used to asess an employee's potential or to set future performance goals for him .It is basically a future oriented Technique used for performace appraisal of an employee .

Peter F Drucker gave the concept of MBO .MBO can be described in 4 steps ::

Step 1) To establish the goals each subordinate is to attain .Supervisors and subordinates may work together to establish such goals .Goals wud mean a desired outcome to be achieved . Such goals are then used to evaluate the employees .

Step 2) Involves setting the performance standard for the subordinates in a previously arranged time period .As subordinates perform they know what to do , what has been done and what remains to be done .

Step 3) In this step the actual level of goal attainment is compared with the goals agreed upon . The evaluator explores the reaons for the difference . This helps determine the possible training needs .

Step 4) This step involves establishing new goals and possibly new starategies for goals agreed upon .If subordinate has succeded the goal attainment he may be involved in goal setting process .

MBO Process is more useful and successful with managerial personnel and employees who have a fairly wide range of flexibility & self control in their jobs .Jobs with little or no flexibility , such as assembly line work are not very compatible with MBO .