Mbo Cycle

September 1, 2017 Management

2. In your own words, what are the six steps in the basic MBO cycle. In order for management to successfully achieve the objectives of the organization, they must devise and implement an organizational plan that not only includes top manager but it should also include all members of the team. Peter Drucker’s Management By Objective (MBO) has six cycles that are organized in a systematic way so that management can focus on each step of their goal The Management By Objective cycle begins from the top of the organizational chart where top management first establishes and develops the company’s organizational goals.

The goals should reflect the company’s mission and vision. This process must include a clear and detailed statement of objectives and should define strategies that align with the stated purpose of the organization. Moving into the second phase, management will precede to organize, plan and structure specific goals in conjunction with any feedback received from the specific departments, which includes department heads, subordinates and any other members of the team. Consequently, areas of responsibility will be formulated according to the operational goals, objectives, individual skills, job specifications, and duties involved.

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Moving into the third phase, the action plan will be reviewed with all parties involved to ensure that everyone is clear about the objectives of the organization and what role they will undertake. The action plan will describe responsibilities, job functions as well as what needs to be done, how it will be done, where the function will take place, the-turn- around time or time frame for completion, and who is the most qualified to perform the function. The action plan is agreed upon and handout to everyone.

During this phase, team members are given the responsibility of reaching their objectives. There are ongoing reviews and feedback to ensure that the work is being delegated and completed according to the targeted plans that were outlined. Additionally, a checklist is developed to assess various areas of each team member’s performance so as to measure and determine the type of rating they deserve. The fifth cycle allows for a more comprehensive evaluation of each individual team members performance and skills before the end of the cycle.

This cycle also measures how well the process matched the objectives. A comparison of both is completed along with prior assessments and evaluations. If the team member is on target for meeting stated objectives then they will be rewarded, however, if improvement is needed, or if changes need to be implemented and new strategies need to be developed, at this point, management can take the appropriate action that will produce a more favorable outcome.

Moreover, to maximize long-term success, the sixth cycle gives team members the opportunity to perform a self-analysis of their strengths and weaknesses. Their results are compared with the actual results of the task and the completion of the goal. During this cycle, the manager and the team member will meet to review how well the team member had performed and to also initiate future endeavors.


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