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Management by Objectives (MBO)
Management by Objectives (MBO)
(MBO)
Lecture #16
MBO Example
Sales Representative “Pat”
Pat’s Salary
Actual Salary in ‘06: $35,000
$35,000 in commission
First Option
To increase commission by 14%, Pat could
increase sales activities by 14%
Pat’s ’07 Activity Plan
Annual (Weekly)
$40,000 in commission
Second Option
Examine Pat’s performance record for
possible improvement in sales technique
Weekly Ratio Analysis
38 – 27 – 13 – 2.14 (Pat’s ’06)
30 – 20 – 10 – 2 (Company Std)
Compare Actual to Std
Ratio of Selling Calls to Sales
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