Management by objectives

- MBO
This topic would be discussed
upon by :
Name : Nitika Arora
Roll No. : 16
MBA Ist Semester
 Bibliography
Principles and Practices of Management
{T.N.CHHABRA} PNo 201-211
Essentials of Management {Harold Koontz Heinz
Weihrich} (75-80),229,241,335.
Web references
http://jobfunctions.bnet.com/HUMAN+RESOURCES/Org
anizational+Structure/Management+By+Objectives/
http://www.performancesolutionstech.com/FromMBOtoP
M.pdf
 THE ONE MINUTE MANAGER
(BLANCHARD & JOHNSON)

 Look at your GOALS,

 Look at your PERFORMANCE,

 See
if your behavior MATCHES your
goals
 MBO - Definition

 “MBO can be defined as an approach

which uses objectives as a focal point to
improve managerial performance and
managerial effectiveness, both at the
individual level and organizational level.
These objectives serve to guide,
direct, review and measure performance”
 Features of MBO
 Operational Technique
 Comprehensive Technique
 Participative Management
 Result Oriented
 Systems Approach
 Concentration on Key Result
Areas
 Key Result Areas
 Profitability,
 Market Standing,
 Innovation,
 Production,
 Worker Performance,
 Financial and Physical resources,
 Manager’s performance and development,
 Public responsibility
 Steps in MBO
 Setting of Organizational Objectives
 Formulation of Departmental Objectives
 Establishing Goals of Subordinates
 Establishing Key Result Areas
 Follow-up and Periodic Review of Progress
 Appraisal of Performance and Counseling
 Advantages Of MBO
 Unity of Planning
 Organizational Control
 Human Motivation
 High Productivity
 Coordination of Efforts and Resources
 Locating Problem Areas
 Decentralization of Authority
 Analyzing training needs and Opportunities of
growth
 Sense of Identification
 Limitations Of MBO
 Difficulty in setting Quantitative Targets
 Emphasis of Short-term Goals
 Resistance to Change
 Lack of Training
 Lack of Follow-up
 Rigidity
 Limited Application
 Costly Process
 MBO In India
 Madhura Coats Ltd.
 Bharat Bhijlee
 Hindustan Copper Ltd.
 Directorate of Industries and Commerce
 Tamil Nadu Dairy Development
Corporation
OTHERS ARE :-
 Bhel, Grind lays Bank, Blue Star. Shaw
Wallace, Glaxo Ltd.
 MBO in India
– Madhura Coats Ltd.
PHASE 1 KRA PHASE 2 KRA

PROFITABILITY MODERNISATION

COST REDUCTION QUALITY

FINANCIAL MARKETING
RESOURCES STRATEGY
EXPANSION LONG RANGE
PLANNING
MODERNISATION EXPANSION
 Conclusion
Every rational human activity must
have certain clear-cut objectives or
goals. These objectives will check the
members of the organization from
deviating from the route they have
set for themselves. To ensure this or
implement this, MBO is put into
practice.
 THANK YOU!!!!!
QUERIES IF ANY, ARE INVITED.