Management By Objective

MBO is a specific technique for setting goals.

Aimed at integration of individual and
organization goals.
A system to help in planning, organizing,
problem-solving, and motivating.
MBO involves participation of subordinates
and their managers.
Both parties set and clarify goals for
subordinates

How MBO Works

Manager and subordinate jointly
identify common goals.
Define major areas of responsibility
in terms of results expected.
Use measurements as guides for
operating and assessing
contributions

Steps in MBO
1. Supervisor proposes:
Specific goals.
Ways to measure them for designated time
period.

2. Subordinate and superior jointly

develop mutually agreed upon goals.
3. Period of performance.
4. Feedback of results with comparison
between actual performance and goals.

Steps in the MBO Process