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Management by Objective

Management by Objective


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Published by pk__pimar
it is an ppt made by prabhat. in 2nd sem in PIMAR.
it is an ppt made by prabhat. in 2nd sem in PIMAR.

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Published by: pk__pimar on Apr 22, 2009
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Management by Objective (M.B.


Nature of objective.
• Hierarchy of objective. • Process of formulating Objective and the Organizational Hierarchy. • Network of objective. • Multiplicity of objjective.

Level of Organizational Hierarchy

Types of objective

Vision Mission Overall objective of the firm. Board of directors and top level managers. Objectives in the key result •Productivity •Physical and financial resource. •Profitability and market standing. •Innovation. •Managerial performance and development, worker performance and attitude. •Social responsibility. •Quality and service issues.

Divisional objective Middle level manager. Departmental objectives. Department and unit objective. Lower level manager. Objective for subordinate. •Performance goal. •Development goals.

• This concept was first introduce by Mr. Peter Drucker in the 1950. • Definition :- Odeiorne stated the concept as “ A process whereby the superior and the subordinate managers of an enterprise jointly identify its common goals, define each individual’s major areas of responsibility in terms of the result expected of him, and use the measures as guides for operating the unit and

• Heinz Weihrich and Harold Koontz define M.B.O as “ A comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed toward the effective and efficient achievement of organizational and individual objective.

The M.B.O Process has many steps:Develop overall organizational goal.

Establish specific goals for various departments, subunits and individual.

Formulate action plans identifying the problem areas.

Implement and maintain self-control.

Conduct periodic review of the plans.

Appraise performance of the subordinates.

Benefits of M.B.O:• • • • • Better managing Clarity in Organizational action Personal satisfaction Basic for organizational change. Encouragement of personal commitment. • Development of effective control.

Limitations of M.B.O:-

• Failure to teach M.B.O Philosophy. • Failures to give guideline to goal setters. • Difficulty in goal setting. • Emphasis on short-term goal. • Inflexibility.

Making M.B.O effective:-

• • • • •

Top management support. Training for M.B.O. Formulating clear goal. Effective feedback. Encouraging participation.

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