Objectives in rocket sales

 Individual objectives set

in an organization helps
to attain organizational
goals, satisfying personal
ideals and objectives
 We now present the story
of Harpreet Singh
showing that success
comes when management
is by objectives
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MBO Defined

Management by Objectives,
or MBO as it is
affectionately called, is a
concept expressed by Peter
Drucker more than 50
years ago. This strategy for
managing people, which
focuses on managing teams
based on their ability to
complete individual and
team goals, has been used
in larger organizations
since its inception.
Setting SMART objectives ……
Management by Objectives, or MBO, is a management strategy that uses the S.M.A.R.T.
 S for Specific: It should be described specifically the result that is desired.
 M for Measurable: In order to be able to use the objectives as a part of a review
process it should be very clear whether the person met the objective or not.
 A for Achievable: For instance, an objective which states "100 percent customer
satisfaction" isn't realistically achievable. It's not possible to expect that everyone must
be 100 percent satisfied with their service. A goal of "12 percent  improvement in
customer satisfaction" is better.
 R for Realistic: realistic goals are potentially challenging but not so challenging that
the chance of success is small. They can be accomplished with the tools that the
person has at their disposal.
 T for Time-based: This is the final anchor in making the objective real and tangible.
This final factor is often implied in MBO setting. The implied date is the date of the
next review, when the employee will be held accountable for the commitments that
they've made through their objectives.
MBO IN ACTION
CANON PRODUCTION SYSTEM
The Five-S approach
 Seiri (Sort): Do things in the proper order. Eliminate unnecessary items from the workplace.
Keep the strict minimum.
 Seiton (Set in order): Specify a location for everything. Put things where they belong. Set in
order and identify useful items in order to locate them more easily. "A place for everything and
everything in its place." Designate Location by number, color coding, name. etc.
 Seiso (Shine): Specify recommended procedures for cleanup. Follow the procedures.
Thoroughly clean the work area or work place.
 Seiketsu (Standardize): Standardize best practices in the work area. Keep equipment and the
workplace in the best possible condition.
 Shitsuke (Sustain): Scrutinize practices; expose the wrong ones; learn correct practices and
make sure you use them.
Implementation
 Through frequent grading of each work area by using an inspection check sheet.
 All work are expected to continuously find ways to improve regardless of their performance
Benefits
 The Five-S movement helped change attitudes.
 As a result, performance measures such as defect rates, equipment breakdowns, and number
of accidents have all been improved.
MBO in Action cont..
MICROSOFT/ LARGE CORPORATES

 Eliminate politics, by giving everybody the same message.

 Keep a flat organization in which all issues are discussed openly.
 Insist on clear and direct communication.
 Prevent competing missions or objectives
 Eliminate rivalry between different parts of the organization
 Empower teams to do their own things

INTEL
 A Manager's Guide at Intel provides the following directions.
 Start with a few well-chosen overriding objectives.
 Set your subordinates objectives that fit in with your overriding objectives.
 Allow your subordinates to set their own key results to enable them to meet
their objectives.
THE EFFECTIVENESS OF MBO - STRENGTHS

Organizations create a powerful

motivational system for their employees
by adopting MBO.

Through the process of discussion and

collaboration, communication is greatly
enhanced.

With MBO performance appraisal may

be done more objectively.
MBO helps identify superior managerial
talent for future promotion.

MBO provides a systematic management

philosophy

MBO facilitates control through the

periodic development and subsequent
evaluation of individual goals and plans.
THE EFFECTIVENESS OF MBO -
WEAKNESSES • The major reason for MBO failure is
lack of top management support

• Goals and plans cascading throughout

the organization may not be those of
top management.
• Some firms may overemphasize
quantitative goals
• It underemphasized the importance of
the environment or context in which the
goals were set.
• It didn’t address the “human nature”
issue.
MBO Today…
In the 60’s, 70’s and 80’s it seemed like a good thing to
manage work efforts by goals, hence the term
“management by objectives.”
 At roughly the same time, there was an emerging model
that addressed some of what the MBO model didn’t.
 In the face of increasing change, information demands,
distance from vendors and increase in breadth of
competition, Deming suggested that MBOs are achieved
by persistent, attentive measurement of the details and
quality improvement.
 Deming built a model around the importance of
successfully responding to MBO quality issues, focusing
upon reducing defects and process variations. .
 The Human Rakshash
Monirupa Das
Sneha Krishnan
Kusumika Ganguly
Asmita Gupta
Sreyashi Chakraborty
Ranjita Das
Varun Gujadhur