The Mission And Process Of The MBO Process

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likely to fulfill their responsibilities.
Following figure illustrates the MBO Process. Here, there is goal congruence of employees and organisations. When the employees and the management agree and decide the objectives of the organisation, the employees understand what is expected of them and help set their own individual objectives. Hence, they attain their personal as well as the organizational goals. Figure: Five Step MBO Process
(Source: Drucker, Peter F., "The Practice of Management", 1954)

Step1: Start of MBO Process
An MBO process must start with the wholehearted support of top management. It must be reliable with the philosophy of management. Every level of management in the organisation must take part in the strategic planning …show more content…

An MBO system calls for each level of managers to discover their goals for every area they are accountable for. The long term goals of the organization are outlined in the beginning. After these long term goals are established, management must be concerned with determining precise objectives to be achieved within a given time capsule.
Although, every managerial position gives some results, results in selected areas are crucial to the success of the organisation. These areas are known as the Key Result Areas (KRAs). By identifying the key result areas a manager and an organization can spotlight their scarce resources on the most considerable activities.
Step3: Cascade Objectives to employees
Here, objective setting is a participatory exercise. The objectives for each managerial position are laid down by the manager concerned in consultation with his superior. These goals are shared then with their individual units. Shared targets direct individuals in fulfilling their role.
Step4: Monitor
The role of the management now is to examine the performance of employees as per the standards set. The attention is on future rather than on past. They check progress regularly and over a set period of time. There is external and internal control in this system with routine …show more content…

Similarly, the terms 540, 400, 36, and 180 degrees portrays the feedback is multi-level, multi-source. Here, degree implies the numbers in the varied raters group. According to Peter Ward the 360 Degree Feedback is the systematic collection and feedback of performance data on an individual or group derived from a number of the stakeholders in their performance. Here, the stakeholders are the people surrounding the appraisee such as his boss, team members, peers, customers, subordinates and above all the appraisee himself. Figure source:http://business.wikinut.com/img/30-hiulp7xqyv9-c/360-degree-feedback
The "360 Degree Feedback," system involves detailed processing with the involvement of everybody who works with the individual concern closely enough to form a view or opinion about him. Also, the responses and reactions of friends and family members play a crucial role, especially the response of one's spouse after reaching home. [PA and comp mgt By Goel] [http://www.ijaretm.com/publishpaper/2issue3idp3.pdf]

5. Human Resource Accounting

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