ASBM UNIVERSITY

DEVELOPING VERIFIABLE GOALS

PRESENTED BY GROUP-05
Kalyan Behera MBA/2023-25/09
Sandip Kumar Das MBA/2023-25/25
Lima Mohapatra MBA/2023-25/11
Sumit Ku. Mishra MBA/2023-25/20
Biswa Bijay Satapathy MBA/2023-25/24
 Introduction

• Divisional manager recently heard a lecture on management by

objective and he wants to introduce a concept and expected that his
subordinates should accept this concept.
• He wants to develop this concept but where as his top-level
management did not assign them.
• Then he started the concept with his employees and expect $30 million
in sale, profit before tax 8% and return investment 15% also stabilization
of employee turnover 5%.
• The staff were motivated and looked up to their manager as an
inspiration.

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The case study is based on MBO principles:-
 A performance management strategy that aims to
strike a balance between employees goal and an
organization’s goals.
 Management by objective is to determine choosing
shared goals and giving feedback on the outcome.

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 MBO PRINCIPLE
Peter Drucker sets a number of conditions that must be met:-

• Determined by the employees.

• Formulated at both quantitative and qualitative levels.
• Must be challenging and motivating.
• Daily feedback and at the level of coaching and
development.
• The basic principle is growth and development but not
punishments.
Management by objective (MBO)is also known as
management by results.

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Q1. Can a Divisional manager develop verifiable goals, or
objectives, when they have not been assigned to him or her by the
president? How? What kind of information or help do you believe
is important for the Devisional Manager to have from
headquarters?

No, divisional manager can’t develop verifiable goals or objective

until when they have not been assigned by him/her president. But
in this situation the division manager waited for too long but the
higher management did not act anything in this matter. From the
MBO principle, I think his outcomes will be satisfactory due to his
increased efficiency.
He was hoping for a favorable reaction toward concluding the
subordinates' objectives and making numerous revisions as
necessary.
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.
Q2. Did the divisional manager set the goals in the best way by
the MBO principle? What would you have done?

Yes. Considering the organizational environment and senior management's

unwillingness to finalize the objectives, we think he made the appropriate
decision. We would have done the same thing, but we would have also tried to
add our own suggestions based on prior knowledge to aid them in effectively
completing their tasks within the allotted time.

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 CONCLUSION
 Flexibility to work on own terms improves job satisfaction.
 Involvement of all in decision-making.
 Objective +Goal orientation =Results

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