Four activities make MBO successful:
• Involves employees at all levels and looks beyond day-to-day activities to answer the question“ What are we trying toaccomplish? ”. Managers heed the criteria of effective goalsdescribed in the previous section and make sure to assignresponsibility for goal accomplishment.2)
Develop action plans
• An action plan defines the course of action needed toachieve the stated goals. Action plans are made for bothindividuals and departments.3)
• A periodic progress review is important to ensure thataction plans are working.• These reviews an occur informally between managersand subordinates, where the organization may wish to conductthree-, six-, or nine-month reviews during the year.• This periodic checkup allows managers and employeesto see whether they are on target or whether corrective actionis needed.• The action plan4)
Appraise overall performance•
The final step in MBO is to carefully evaluate whetherannual goals have been achieved for both individuals anddepartments.• Success or failure to achieve goals can become part of the performance appraisal system and the designation of salaryincreases and other rewards.• The appraisal of departmental and overall corporateperformance shapes goals for the next year.• The MBO cycle repeats itself on an annual basis.