BnR-Peng.Manajemen-Chap-08 1

Management by Objectives(MBO)

Dr. Bagus Nurcahyo

Program Studi Manajemen PemasaranDirektorat Program D3 Bisnis & Kewirausahaan

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• Managers AND employees define objectives for every department, project, and person and use them to monitor subsequent performance

• Divide problem into manageable, “bite-size” chunks

Management by Objectives(MBO)

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Essential Steps for MBO

• Set Goals (The most difficult step)– What are we trying to accomplish?

• Develop Action Plans– “What do we need to do to get there?”– Groups and individuals

• Review Progress– “How are we doing?”– Periodically (How Often?)– Does plan need to be tweaked?

• Appraise Performance– Rewards?

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Other Types of Plans

• Single-use plans - developed to achieve objectives that are not likely to be repeated– Can be BOTH programs and projects

• Standing plans - used to provide guidance for tasks performed repeatedly– Primary standing plans are organizational

policies, rules, and procedures• Contingency Plans – used to deal with dynamic

situations or various scenarios

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The New Planning Paradigm

• Set stretch goals: Highly ambitious goals that are clear, compelling, and imaginative.

• Create an environment that encourages learning.

• Design new rules for planning staff.• Make continuous improvement a way of

life.• Planning still starts and stops at the top.

                                                                                                                                                                                                                        

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• Obligation to complete a task– Assigned, assumed, or conferred

• Exists individually and at all levels of an organization

• Responsibility CAN be delegated but CANNOT be transferred

Responsibility

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• Right to use assigned resources, including personnel, to accomplish a task or objective – Right to issue orders and expect

obedience– Power or control to act on responsibility

• CAN and should be delegated• Sources:

– Positional and/or Personal Power

Authority

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• Being answerable for responsibilities– Actions OR Failure to act

• Linked to responsibility– Results NOT “intentions”– Emphasizes necessity to consider all

possible consequences• CAN NEVER be delegated

Accountability

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• Improved Decision Quality• Enhanced subordinate commitment• Time management• Job enrichment• Development of subordinates

– Creates learning opportunities– ID potential leaders

Potential Advantages

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What to Delegate

• Tasks better done by subordinate• Urgent, not high priority tasks• Tasks relevant to a subordinate’s career• Tasks of appropriate difficulty• Both pleasant and unpleasant tasks• Tasks not central to the manager’s role

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Types of Change

• Operational Change– Efforts to improve basic work and

organizational processes•Improve Efficiency•Improve Quality

• Transformational Change– Redesign/renew the entire organization

•Different product•Complete remaking of organization

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• Adoption of a new idea or behavior• To survive/prosper organizations

must continuously adapt• Leaders must:

– Observe trends, patterns, and needs– Identify threats/opportunities, then – Use planned change to adapt

Organizational Change

Change can be managed, but not Change can be managed, but not necessarily controllednecessarily controlled

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Types of Change

• Operational Change– Efforts to improve basic work and

organizational processes•Improve Efficiency•Improve Quality

• Transformational Change– Redesign/renew the entire organization

•Different product•Complete remaking of organization

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“Learning Organization”

• Leadership provides vision/strategy• Positive environment• Good Communication flow (Share Info)• Everyone involved (Empowerment)• Redefine Culture:

– Rethink roles, processes and values– Break old paradigms

Everyone engaged in problem Everyone engaged in problem solving and continuous solving and continuous improvementimprovement

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Forces for ChangeExternal Internal

CustomersManagement

decisions

Competitors Employees

TechnologyProduction

Inefficiencies

Economic

International Arena

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Idea Champions

• Sees need for, and champions, change within the organization

• Change does not occur by itself• Four roles in organizational change:

– Inventor– Champion– Sponsor– Critic

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Resistance to Change• Self-interest

• Perceived personal impact (Loss of something of value)

• Loss of power/prestige/benefits• Lack of understanding and trust

• Do not understand change or intentions behind it• Uncertainty

• Lack information; Fear of unknown• Change brings discomfort and dislocation

• Different assessments and goals• Employees assess proposed change differently• Indictment of current performance?

• Unmotivated employee?

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Implementation Tacticsto overcome resistance

• Communication/Education– Information needed by those resisting change

• Participation– Involve resistors in designing change– Helps identify potential problems and

differences in perceptions among employees • Negotiation - win acceptance with formal

bargaining• Coercion - resistors accept or suffer

consequence. Only use when rapid response is urgent.

• Top Management Support– Support symbolizes importance– Without support, change unlikely

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Leadership Differences

Transactional leaders:

– Excel at management functions

– Are hardworking– Are tolerant– Are fair minded.– Stress plans, schedules

and budgets

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Leadership Differences

Charismatic Leaders:

• Inspire/motivate people to do more, despite obstacles and personal sacrifice.

• State a vision of an imagined future with which employees identify.

• Shape a corporate value system for which everyone stands.

                              

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Leadership Differences

Transformational Leaders:

– Bring about innovation and create significant change in followers and organization.

– Lead changes in the organization's mission, structure, and human resource management.

– Focus on intangible qualitiesVision, shared values, ideas to build

relationships– Provide common ground to enlist

followers in changes.

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Network Centric Warfare

• Speed of Command– Information superiority – Understand vice data– Forces act with speed, precision, and reach– Results rapidly foreclose enemy options,

synergistic effects dominate• Enables neutralization of enemy forces at outset of hostilities. Changes his strategy completely.Lock in our success, lockm out his alternatives.• Self synchronization denies the enemy operational pause. Maintains awareness.

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• Exchanged-based relationship in which leader and followers get some (or all) of their needs met– Reward for good performance– Discipline for poor performance

• Dependent on leader’s control of rewards and penalties

• Transitory:– Effective as long as mutually

beneficial– or leader present…

Transactional Leadership

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Transactional Leadership

• Works well in stable organizations– Does military qualify?

• Generally easier to use. Why?Why?• Transactional Leaders:

– Excel at management functions– Stress plans, schedules and budgets

•Explain what is required/what will be received if requirements met

– Initiate structure/Arms length dealings

• Goal = Change of behavior

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Transformational Leadership

• Leader has powerful vision of what organization could be– Broadens employee interests to look past

self-interest for the good of the group– Raises standards/Challenges the status

quo– Generates awareness and acceptance

• Cultivates strong bonds with followers– Bonds develop over time

• Goal = change of attitudes

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Transformational Leadership

• Charisma (Draw to the leader)– Vision, sense of purpose, larger

meaning– Instill pride/Sense of being elite– Gain respect and trust

• Inspiration (Impact on followers)– Communicates high expectations– Uses symbols to focus efforts– Walks the walk:

•Takes calculated risks•Proves belief in vision by actions