Important Notes Chap-1-4 Management by Objective MBO (Peter Drucker 1954) + A comprehensive managerial system a ‘ that integrates many Ais = key managerial activities in a systematic manner and is consiciously directed toward the 2 od effective and efficient i achievement of ay individual objective aManagement by Objective MBO (Peter Drucker 1954) It is a control tool It is motivational tool It is used to appraise people It is the tool of EMPOWERMENT Link between top management strategic thinking and strategy implementation 6 Elements of Management by "OaRoON= Objective Commitment to the program Top level goal setting Individual goals Participation .. Autonomy in implementation of plans Performance review. Reward system (subsystem)Management by Objective ADVANTAGES + Improvement of managing through result oriented planning Greater commitment and satisfaction on the part of subordinates. Enforced planning and prioritizing of future activities on the part of superiors and subordinates More rationale method of performance evaluation based on contribution to organizational objectives Individual outshine others by self controlling, personnel development,and creativity Management by Objective + WEAKNESS: The time and paper work involved Failure to teach the philosophy of MBO. Difficulty in setting verifiable goal with flexibility Emphasis on short run goals at the expense of long term Overuse of quantitative goals Non-ethical ways adopt to achieve objectives