The implementation of an MBO program typically occurs in 3 phases:
Phase 1: focuses on evaluating performance against measurable objectives. (administered almost exclusively by the human resource dept. Attempt to clarify responsibilities andfocus on achieving results.)
Phase 2: MBO programs are integrated into an organization’s planning and control processes. Greater involvement and support are obtained from both top management and linemanagers, and the MBO program becomes tied to the organization’s planning andbudgeting cycle.
Phase 3: is a fully implemented MBO system. In this phase, all of the major organizational functions and key management processes are integrated in a logical and consistent manner. These functions and processes include performance evaluations, budgeting and financial planning, the development of strategic plans and overall goals, staffing, compensation, human resource development, and management training and development. The emphasis is on teamwork and flexibility in establishing goals and plans, frequent performance reviews, and achieving individual growth and development