4. Effective goal setting and planning by top management.
5. Mutual goal setting
6. Frequent individual performance reviews
7. Some freedom in developing means of achieving objectives.
MBO is thus, a method of mutual goal setting, measuring progress towards the goals, tacking action to assure goal attainment, feedback and participation. It is a result- oriented philosophy, enabling an employee to measure progress towards a goal, which the employee often has helped to set.
Features of MBO: The key features of MBO are:
1. Superior and subordinate get together and jointly agree upon the list of principal duties and areas of responsibility of the individual’s job.
2. The subordinate sets his own short-term performance goals or targets in cooperation with his superior.
3. They agree upon criteria for measuring and evaluating performance.
4. From time-to-time (periodically), the superior and subordinate get together to evaluate progress towards the agreed-upon goals. At these meetings, new or modified goals are set for the remaining period.
5. The superior plays a supportive role. He tries, on a day-to-day basis, to help the subordinate achieve the agreed upon goals.
6. In the appraisal process, the superior plays less of the role of a judge and more of the role of one who helps the subordinate attain the organisation goals or targets.
7. The process focuses upon results accomplished and not upon personal traits.