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MBO is a process of agreeing upon objectives of the organisation so that management and employees agree to the objective and understand them in the context of long-run.

This performance management system introduced SMART criteria which is an acronym for:

S Specific

M Measurable

A Attainable

R Realistic

T Time bound

Thus MBO provides guidline and hence enhances the performance of the workforce since it integrates the objcectives of the organistaion and inividuals.

FEATURES:

- It integrates the corporate objectives with that of individuals'.

- The use of objectives provides a basis for measurement.

- It is management by agreement rather than management by command.

- It requires employees to manage their own performance.

It provides coordination of

- Long-term goals with short term

- Plans of the junior workforce with the plans of senior management

- The working between departments.

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15y ago
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13y ago

they improve welfare of their employees and also send them out for foreign courses

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