Components of MBO MBO involves the employee in participative goal setting.Increased levels of participation lead to satisfaction improvements, although this relationship appears to depend on the needs of the employee (Steers, 1976).Knowledge of results tends to increase performance levels, but the results are more apparent when it is tied to goal setting (Locke and Bryan, 1969; Nemeroff & Consantio, 1979; Conlon, 1980) and the individual values (Braunstein, Klein, and Pachla, 1973; Latham and Baldes, 1975).Consistent and signifi cant improvements in performance as a result of goal setting have been found in studies by Locke and others (Bryan & Locke, 1967; Locke & Bryan, 1969; Locke, Cartledge & Knerr, 1970; Locke, 1975; and Umstot, Bell & Mitchell, 1976; and Iv ancevich, 1977).Effectiveness seems to de pend on the amount and type of participation (Latham & Saari, 1979; and Euske & McFillen, 1979) and the individual (Steers, 1975 & 1976; Ivancevich, 1979; and French, Israel, & As, 1960).Latham and Yukl (1975) indicate these components in the process of goal setting.(See Arvey, Dewhirst & Brown, 1978, for a review).