The objective of the study was to identify the characteristics of the superior, the subordinate, and the situation which were related to the manner in which the "Management by Objectives" (MBO) process is carried out. Data collected from 112 managers in a national industrial firm was used in the analysis. Previous research with this data had demonstrated that the manner in which the MBO process was carried out influenced the results obtained with the MBO approach. A number of factors were found to be related to characteristics of the goals established, the procedures used to establish the goals, and how frequently performance was reviewed with respect to these goals. How the superior's boss carried out the MBO process with him, the superior's personality, his perceptions of higher management support and concern for the MBO program, and the competence of his subordinates all were significantly related to how the superior implemented the MBO process with his subordinates. (Author)