THE SAN JOSE POLICE DEPARTMENT GREW RAPIDLY IN THE 1960'S AND 1970'S, AND HAD OVER 1,000 EMPLOYEES (800 SWORN PERSONNEL) IN 1979. BECAUSE THIS GROWTH, PREVIOUS INFORMAL PROCEDURES FOR GOALSETTING, COMMUNICATION, AND ACCOUNTABLITIY HAVE PROVED INEFFECTIVE. THE FORMAL MBO SYSTEM DEVELOPED INCLUDES QUARTERLY REPORTING, REGULAR TOP MANAGEMENT MEETINGS, AND FOLLOWUP AND ACCOUNTABILITY. THE SYSTEM IS DESIGNED TO ESTABLISH OBJECTIVES FOR EACH SECTION OF THE DEPARTMENT WHICH CONTRIBUTE TO OVERALL DEPARTMENTAL GOALS. QUANTIFIABLE MEASURES OF SUCCESS ARE ATTACHED TO EACH OBJECTIVE. THROUGH MONTHLY AND QUARTERLY REPORTS, MANAGEMENT CAN DETERMINE THE DEGREE TO WHICH OBJECTIVES ARE BEING MET. OBJECTIVES AND PRODUCTIVITY MEASURES ARE SELECTED FROM GENERAL RESEARCH OF POLICE LITERATURE AND AN ANALYSIS OF THE SAN JOSE COMMUNITY. EMPHASIS IS PLACED ON SETTING AND ACHIEVING MAXIMUM OBJECTIVES WITHIN THE LIMITS OF AVAILABLE RESOURCES. THE INFORMATION SYSTEM DEVELOPED ACCORDING TO DATA NEEDED FOR MEASURING THE ATTAINMENT OF OBJECTIVES IS HELPFUL IN BOTH EVALUATION AND THE ESTABLISHMENT OF BUDGETS. STEPS FOR CREATING AN MBO SYSTEM IN LARGE OR SMALL DEPARTMENTS ARE ALSO NOTED. FOOTNOTES, SAMPLE FORMS, AND A FLOW CHART ARE INCLUDED. (AUTHOR ABSTRACT MODIFIED)