Management By Objective

Presented by:
Zohra Saleem
 “A collaborative process in which managers and
employees set mutually agreeable goals, define the
responsibility for results, and determine the means of
evaluating individual and group performance”.
 The MBO Process
 The p roce ss cons is ts of a cycle of f our
st eps:

 Settin g goals
 pl an ning act ion
 imp le me nt ing pl ans
 rev iewi ng per forma nce
 Setting goals
 The first step
 Top managers formulate the overall
organizational goals
 Middle managers work with first line managers
to set goals
 This strengthens organization’s overall goals,
and commitment.
 Planning action

 The second step

 During action planning, managers decide on the
“who, what, when, where, and how” details
needed to achieve each objective.
 Implementing plans
 The third step is implementing
 to control their performance managers must be
allowed to implement their plans in their own
way.
 Element of self control
 Reviewing performance
 Last step in MBO
 managers review the performance of the
people they supervise
 evaluate the plans to achieve individual
and group goals
 discuss how can these obstacles be
removed
 Benefits of MBO Program
 Abilityto focus management and employee
attention on specific activities that directly
influence performance and goal attainment.
 MBO process foster participation, which can
encourage stronger commitment and motivation.
 It provides an unbiased and systematic way to
measure the contribution of managers and
employees.
 Limitations
 Without the consistent involvement and
commitment from top management, an MBO
program can’t prove to be effective.
 The difficulty of setting specific MBO goals for
particular jobs and areas of performance.
 MBO program may overemphasize to maintain
short term goals and performance , postponing
or ignoring activities needed to maintain long
term organizational health.
THANK YOU