Management by objectives

- MBO

This topic would be discussed upon by :

Name : Nitika AroraRoll No. : 16

MBA Ist Semester

BibliographyBibliography

Principles and Practices of Management{T.N.CHHABRA} PNo 201-211

Essentials of Management {Harold Koontz Heinz Weihrich} (75-80),229,241,335.Web referenceshttp://jobfunctions.bnet.com/HUMAN+RESOURCES/Organizational+Structure/Management+By+Objectives/http://www.performancesolutionstech.com/FromMBOtoPM.pdf

THE ONE MINUTE THE ONE MINUTE MANAGERMANAGER(BLANCHARD & JOHNSON) (BLANCHARD & JOHNSON)

Look at your GOALS,

Look at your PERFORMANCE,

See if your behavior MATCHES your goals

MBO - MBO - Definition Definition “MBO can be defined as an approach

which uses objectives as a focal point to improve managerial performance and managerial effectiveness, both at the individual level and organizational level. These objectives serve to guide,

direct, review and measure performance”

Features of Features of MBOMBO

Operational TechniqueComprehensive TechniqueParticipative ManagementResult OrientedSystems ApproachConcentration on Key Result

Areas

Profitability, Market Standing, Innovation, Production, Worker Performance, Financial and Physical resources, Manager’s performance and

development, Public responsibility

Key Result AreasKey Result Areas

Steps in Steps in MBOMBO Setting of Organizational Objectives Formulation of Departmental Objectives Establishing Goals of Subordinates Establishing Key Result Areas Follow-up and Periodic Review of

Progress Appraisal of Performance and Counseling

Advantages Of Advantages Of MBOMBO Unity of Planning Organizational Control Human Motivation High Productivity Coordination of Efforts and Resources Locating Problem Areas Decentralization of Authority Analyzing training needs and Opportunities of

growth Sense of Identification

Limitations Of MBOLimitations Of MBO

Difficulty in setting Quantitative Targets Emphasis of Short-term Goals Resistance to Change Lack of Training Lack of Follow-up Rigidity Limited Application Costly Process

MBO In India Madhura Coats Ltd. Bharat Bhijlee Hindustan Copper Ltd. Directorate of Industries and Commerce Tamil Nadu Dairy Development

Corporation

OTHERS ARE :- Bhel, Grind lays Bank, Blue Star. Shaw

Wallace, Glaxo Ltd.

MBO in India MBO in India – – Madhura Coats Ltd.Madhura Coats Ltd.

PHASE 1 KRA PHASE 2 KRA

PROFITABILITY MODERNISATION

COST REDUCTION QUALITY

FINANCIAL RESOURCES

MARKETING STRATEGY

EXPANSION LONG RANGE PLANNING

MODERNISATION EXPANSION

ConclusionConclusionEvery rational human activity must

have certain clear-cut objectivesobjectives or goals. These objectives will check the members of the organization from deviating from the route they have set for themselves. To ensure this or implement this, MBOMBO is put into practice.

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