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)