Management by objectives (MBO) is a strategic management model that aims to improve organizational performance by clearly defining objectives that are agreed to by both management and employees.

What are the 4 steps in the MBO process?

The Theory of MBO The following four major components of the MBO process are believed to contribute to its effectiveness: (1) setting specific goals; (2) setting realistic and acceptable goals; (3) joint participation in goal setting, planning, and controlling; and (4) feedback.

Which is the first step in process of MBO?

Establishing Goals: The first step in an MBO programme is the establishment of clear and concise goals of performance which are understood and accepted by both superior and subordinate. Initially, the superior determines his objectives and general programme.