He is being rewarded for leaving work. By giving a person more control and responsibility and the money that goes with it, you are saying you value the work. Objectives, quotas, performance standards are agreed to. MBO assumes empowerment and autonomy of the worker. He must have some control of his own work for MBO to be applicable.
Manager plays role of counselor and facilitator.
Needs to withhold judgements and be willing to adjust goals. The worker agrees to adopt the organization's goals.