Communication is the key factor in determining MBO's success or failure. The supervisor gives feedback and may authorize modifications to the objectives or their timetables as circumstances dictate. Finally, the employee's performance is measured against his or her objectives, and he or she is rewarded accordingly. Steps in MBO Process Research has demonstrated that when top management is committed and personally involved in implementing MBO programs, they significantly improve performance. This finding is not surprising when one considers that during the MBO process employees determine what they will accomplish.
Objectives are the driver of planning processes.
It is imperative that top managers safeguard the intention of their goals to facilitate middle and lower management's effective translation and implementation of them. Objectives guide managerial activities such as budgeting, the development of action plans, staffing, and the purchasing of equipment. The organization's success ultimately depends on the combined outcomes of its objectives. Objectives Most supervisors set objectives, but not with equal skill. Few, who do not correctly write objectives, will reap MBO's full benefits.