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MANAGEMENT

BY OBJECTIVES
Peter Drucker 
TOPICS
Definition by Peter Drucker
Drucker's key Objectives
​Process
Benefits​
Limitations 
INTRODUCTION
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MBO
DEFINITION

 MBO is a management system in which the manager and employees work


together to develop areas of responsibility for employees.
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DRUCKER'S KEY OBJECTIVES

• Profitability
• Innovation
• Market standing
• Productivity
• Financial and physical resources
• Managerial performance and development
• Worker performance and attitude
• Public responsibility
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“ MANAGEMENT BY OBJECTIVE
WORKS- IF YOU KNOW THE
OBJECTIVES, NINETY PERCENT


OF THE TIME YOU DON'T.
Peter Drucker
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PROCESS
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BENEFITS LIMITATIONS
• Clarity of goals and • Time consuming
organizational structure. • Manager sometimes over
• Motivation- involving employees emphasize target setting
in the whole process • Coordination problem.
increases employees job • It might lead to tug of war
satisfaction and commitment. between subordinates and
• It usually results in better superiors.
teamwork. • Short term nature of
• Higher commitment and loyalty. goals( strategic goals are replaced
• Managers can ensure that by operational goals
subordinates objectives are • Increases paperwork.
related to the organizations
objectives.
THANK YOU

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