Formulate company’s overall objectives & strategies by top-management (1st step) | Allocate major objectives to company’s divisions & departments by economics division (2nd step) | Departmental managers to set specific objectives for their departments in collaboration with the divisional managers (3rd step) | Departmental managers to set specific objectives in collaboration with all departmental staff (4th step) |
Write down specific action plans to define how objectives are to be achieved & agreed upon them by dept. managers with employees (5th step) | Implement action plans (6th step) | Progress towards objectives to be periodically reviewed and a feedback to be provided (7th step) | Successful achievement of the objectives is reinforced by performance based rewards (8th step) |