The literature on many different types of management program including MBO says that the major factors affecting MBO effectiveness include difficulty of goals, specificity of goals, participation in goal-setting, fairness of performance appraisal, per...
The literature on many different types of management program including MBO says that the major factors affecting MBO effectiveness include difficulty of goals, specificity of goals, participation in goal-setting, fairness of performance appraisal, performance-based reward system, and top-manager’s commitment. These factors were regarded as the independent variables in this paper while the dependent variable of MBO effectiveness was measured by improvement in productivity and competition. The effects of MBO program on this effectiveness were analyzed using a sample of 1,528 government officials in 16 prefectures and 78 local governments. Results showed that the major factors affecting the gain in productivity were the specificity of goals, the fairness of performance appraisal, the difficulty of goals those intensifying competition in organization were the performance-based reward system and the difficulty of goals. The top-manager’s commitment was positively correlated with both independent and dependent variables.