Management by Objectives
Management by ObjectivesMBO
Management by Objectives (MBO)
Can be defined as a process whereby the performance goals and objectives are set by each subordinate in collaboration with his superior at the start of the appraisal period.
MBO is a Process
A process consisting of a series of interdependence and interrelated steps:
The formation of clear, concise statements of objectives
The development of realistic action plans for their attainment,
The systematic monitoring and measuring of performance and achievement, and
The taking of corrective actions necessary to achieve the planned results THE MBO PROCESS
Define
Organisational
goals
Defining
Employee
Objectives and
Organisational
Objectives
Reporting &
Reviewing
Continuous
Monitoring of performance and progress
Providing
Feedback
Performance
Evaluation &
Review
MBO is a Philosophy
Reflects a Proactive way of managing that is
Result Oriented
Emphasizes accomplishments rather than inputs
Encourages participation at all levels of and organisation
Objectives setting and participative management are integrally linked by :
Allowing employees to participate in the setting of objectives
Encouraging everyone to work towards accomplishment of general organisational objectives
MBO Framework
MBO provides the basis for making functional budget estimates
Evaluation of MBOs provides a way to communicate purpose & accomplishments to the public.
MBO provides a way to involve and motivate staff.
Four Basic Principles
Unity of management action is more likely to occur when there is pursuit of a common
objective
Greater the focus on results on a time scale, greater the likelihood of achieving them Greater the participation in setting meaningful work with accountable results, greater the motivation for completing it
Progress can only be measured in terms of
what
Management by Objectives (MBO)
Can be defined as a process whereby the performance goals and objectives are set by each subordinate in collaboration with his superior at the start of the appraisal period.
MBO is a Process
A process consisting of a series of interdependence and interrelated steps:
The formation of clear, concise statements of objectives
The development of realistic action plans for their attainment,
The systematic monitoring and measuring of performance and achievement, and
The taking of corrective actions necessary to achieve the planned results THE MBO PROCESS
Define
Organisational
goals
Defining
Employee
Objectives and
Organisational
Objectives
Reporting &
Reviewing
Continuous
Monitoring of performance and progress
Providing
Feedback
Performance
Evaluation &
Review
MBO is a Philosophy
Reflects a Proactive way of managing that is
Result Oriented
Emphasizes accomplishments rather than inputs
Encourages participation at all levels of and organisation
Objectives setting and participative management are integrally linked by :
Allowing employees to participate in the setting of objectives
Encouraging everyone to work towards accomplishment of general organisational objectives
MBO Framework
MBO provides the basis for making functional budget estimates
Evaluation of MBOs provides a way to communicate purpose & accomplishments to the public.
MBO provides a way to involve and motivate staff.
Four Basic Principles
Unity of management action is more likely to occur when there is pursuit of a common
objective
Greater the focus on results on a time scale, greater the likelihood of achieving them Greater the participation in setting meaningful work with accountable results, greater the motivation for completing it
Progress can only be measured in terms of
what