Process of MBO The following are the stages involved in the MBO process 1. Setting of organizational objectives The first step in MBO is the definition of organizational objectives and purpose. Usually the objective setting starts at the top level of organization and moves downward to the lowest managerial levels. The setting objective include defining the purpose of organization, long range and short range organizational objectives, divisional or departmental objective an d individual manager‘s objectives. 2. Identification of Key Result Areas Organizational o0bjectves provide the basis for the identification of Key Result Areas(KRAs). KRAs are derived from thr expectations of various stakeholders and they indicate the priorities for organizational performance such as profitability, market standing, innovation, productivity, social responsibility etc 3. Setting subordinates‘ objectives The achievement of organizational goals is only possible through individu...