Management By Objectives

Management By Objectives

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  Presented By- Rahul Dey,Joydeep Chakrabroty, Chandrani Sutradhar BBA(H) 3rd Sem 2nd Year Eminent College of Management & Technology Management by objectives rpoint-templates-design.com
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  01 01 02 03 Introduction Management by objectives(MBO), also known as management by results (MBR), was first popularized by Peter Drucker in his 1954 book The Practice of Management. Management by objectives is the process of defining specific objectives within an organization that management can convey to organization members, then deciding on how to achieve each objective in sequence. An important part of MBO is the measurement and comparison of an employee's actual performance with the standards set. Ideally, when employees themselves have been involved with the goal-setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.
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  Definition- “Managers should avoidthe activity trap", getting so involved in their day to day activities that they forget the main purpose or objective. Instead of just a few top-managers, all managers should: participate in the strategic planning process, in order to improve the implement ability of the plan, and implemental range of performance systems, designed to help the organization stay on the right track. Peter Ducker A process whereby superior and subordinate managers of an Organization jointly define its common goals, define each individuals major areas of responsibility in terms Of results expected of him and use these measures as guides for operating the unit and assessing the contribution of each of its members. George Odiome
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  What is MBO? Management by objectives (MBO) is a systematic and organized approach that allows management to focus unachievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives.  Management by Objectives (MBO) was first outlined by Peter Ducker in 1954 in his book The Practice of Management. In the 90s, Peter Ducker himself decreased the significance of this organization management method, when he said: "Its just another tool. It is not the great cure for management inefficiency... Management by Objectives works if you know the objectives, 90% of the time you don't."
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  MBO Principles :- Cascading of organizational goals and objectives Specific objectives for each member.  Participative decision making. Explicit time period Performance evaluation and feedback
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  Where to useMBO?  The MBO style is appropriate for knowledge-based enterprises when your staff is competent. It is appropriate in situations where you wish to build employees management and self-leadership skills and tap their creativity, tacit knowledge and initiative. Management by Objectives (MBO) is also used by chief executives of multinational corporations (MNCs) for their country managers abroad.
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  MBO Process  Collectively fixingobjectives. Collectively making a plan. Subordinate implements the plan. Collectively monitoring performance.
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  Advantages of MBO- Develops result-oriented philosophy Formulation of dearer goals Facilitates objective appraisal Raises employee morale Acts as motivational force Facilitates effective control
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  Limitation Time-consuming Reward-punishment approach  Increasespaper-work Creates organizational problems Develops conflicting objectives Problem of co-ordination  Lacks durability Problems related to goal-setting  Lack of appreciation
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  Conclusion Management by objectiveshas become de facto practice for management in knowledge-based organizations such as software development companies. The employees are given sufficient responsibility and authority to achieve their individual objectives.“What is not measured cannot be managed.”
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