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What are the features of MBO (Management by Objectives)?
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1. Superior-Subordinate Interaction—The superior and the subordinate (the management pair) get together and jointly agree upon and prepare the list of duties and areas of responsibility of the individual's job.
2. Superior and Subordinate Mutually Set Goal—The subordinate sets his own short-term goals or targets in consultation with his boss who guides him in the process of goal-setting. The goals set are realistic and reasonable and they satisfy also the needs of the organisation.
3. Superior and Subordinate Mutually Set Performance Criteria—The superior and his subordinate ascertain the methods to be used in achieving the objectives as well as receiving any training needed. They agree upon standards or norms for measuring and evaluating performance.
4. Progress Evaluation—From time to time, usually three or four times a year, they get together to evaluate progress toward the predetermined goals. At these face-to-face meetings new or modified goals are set for the next period.
5. Superior's Supportive Role—The superior plays a supportive role. He helps his subordinate constantly in achieving the pre-set objectives. He acts as a coach and offers valuable advice and guidance. 
6. Focus of MBO—The process of MBO emphasize the result and not the means or personal traits. The superior does not act as a judge to pass his verdict on the performance of his subordinate. In fact, the superior helps through continuous guidance the subordinate to reach his goals. It is concerned with assessing performance and not with evaluating or rating qualities and potentials of the subordinates staff. It is interested only in work-related and carrier-oriented goals. Primary emphasis is on self-supervision and self-regulation by the subordinates with frequent feedback of information for effective control and 'communication.