Exercise 4-9: Assessing the Implementation of an MBO System

The purpose of this exercise is to assess the degree to which an MBO system was implemented effectively in an organization.

Step 1: Attempt to find someone in a job similar to your own who works under an MBO system. If this is not possible, find anyone who works under such a system. If you cannot conveniently find someone else, turn in a blank exercise. You will not be penalized if you cannot complete Exercise 4-9.

Step 2: Interview the jobholder, and complete both the MBO Implementation checklist and the MBO Component Checklist which are found on the following pages. The interview will be necessary because some jobholders will not understand our terms.

Step 3: Describe (on the basis of a discussion with the jobholder) the effects the method of implementation of the MBO program had on the employees of the organization.

MBO IMPLEMENTATION CHECKLIST PART 1

1. How effective is the MBO system under which you are working?

( ) Very effective

( ) Effective

( ) Somewhat effective

( ) Somewhat ineffective

( ) Ineffective

( ) Very ineffective

Yes No

2. ( ) ( ) Before the implementation of the MBO process, was each jobholder given information about its nature and purpose?

3. ( ) ( ) Was the information initially given in an organization-wide seminar prior to the actual implementation with a resource person available to handle questions and answers (as opposed to the information arriving in the mail or merely handed down to the subordinate from the supervisor)?

4. ( ) ( ) Did the MBO process start at the top and move downwards only when the top group mastered it?

5. ( ) ( ) Did the jobholders receive expert help in their first attempts to set their objectives and plan key activities?

6. ( ) ( ) Did each manager receive training in conducting negotiation and appraisal sessions and was each given direct third-party coaching during the first few sessions?

7. ( ) ( ) If the organization is in the Public Sector, were politicians fully involved?

Is there any reason to believe from the above information that the implementation of the MBO system was effective?

MBO COMPONENT CHECKLIST PART 2

Yes No NA (not applicable or uncertain)

1. ( ) ( ) ( ) Are there objectives (of any kind) for his/her job?

2. ( ) ( ) ( ) If yes, are they well written (according to the characteristics outlined in this workbook)?

3. ( ) ( ) ( ) If #1 is yes, were the objectives negotiated (versus handed down)?

4. ( ) ( ) ( ) Is there a system for measuring the results of his/her performance?

5. ( ) ( ) ( ) If #4 is yes, does he/she receive frequent, valid information about his/her performance results (as opposed to year-end results or no information)?

6. ( ) ( ) ( ) If #4 is yes, was the measurement system jointly determined by him/her and his/her boss?

7. ( ) ( ) ( ) Does he/she have a formal appraisal interview?

8. ( ) ( ) ( ) If #7 is yes, is the appraisal based on objective information about the results he/she has achieved (as opposed to a checklist of personal traits)?

9. ( ) ( ) ( ) If #7 is yes, is the appraisal more or less a problem-solving type in which the results are openly and jointly explored and there is a focus on how to do better (as opposed to having the boss hand down judgments about his/her performance)?

10. ( ) ( ) ( ) If #7 is yes, are the objectives renegotiated during this session (as opposed to treated as fixed and inflexible)?

11. ( ) ( ) ( ) Are his/her formal rewards (pay increments, promotions) contingent on success in reaching specific pre-set objectives?

12. ( ) ( ) ( ) If he/she does operate under objectives, were they set in such a way as to make them consistent with the mission or purpose of the organization?

13. ( ) ( ) ( ) Is his/her supervisor willing and sufficiently available to give him/her on-going guidance about his/her performance?

14. ( ) ( ) ( ) If he/she operates under objectives of any kind, did he/she also engage in planning of the type in which key activities to help achieve the objectives were mapped out?

15. ( ) ( ) ( ) If he/she operates under objectives of any kind, did he/she ever have any instruction or help in writing his/her first set of objectives?