MANAGEMENT BY OBJECTIVES
Bavijesh ThaliyilM.Ed, Dept. of Education
University of Kerala
”
The best way to predict your future
is to create it
_Peter F Drucker
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MBO- A preludeMBO- A preludeThe term "management by objectives" was first popularized by Peter Drucker in his 1954 book 'The Practice of Management'
“Management by Objectives (MBO) is a process of agreeing upon objectives within an organization so
that management and employees agree to the objectives and understand what they are in the
organization”
Management By Objectives (MBO) can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed.
MBO- Main conceptMBO- Main concept
To make sure that everybody within the organization has a clear understanding of the aims, or objectives, of that organization, as well as awareness of their own roles and responsibilities in achieving those aims. The core concept of MBO is planning, which means that an organization and its members are not merely reacting to events and problems but are instead being proactive.
MBO requires that employees set measurable personal goals based upon the organizational Goals. Goals are set down in writing annually and are continually monitored by managers to check progress. Rewards are based upon goal achievement. MBO is a supervised and managed activity so that all of the individual goals can be coordinated to work towards the overall organizational goal
MBO- Main conceptMBO- Main concept
Cascading of organizational vision, goals
and objectives
Specific objectives for each member
Participative decision making
Explicit time period
Performance evaluation and feedback
MBO- ProcessMBO- Process
Determine or revise the organizational objectives
Translating the organizational objectives to employees
Stimulate the participation of employees in the determining of the
objectives
Monitoring of progress
Evaluate and reward achievements
MBO- SMART MethodMBO- SMART Method
Clarity of goals:-With MBO, came theconcept of SMART goals
MBO- Advantage Vs DisadvantageMBO- Advantage Vs Disadvantage
Advantages DisadvantagesVsVsSuperior-subordinate participation
Joint goal-setting
Joint decision on methodology
Makes way to attain maximum
Support from superior
Time-consuming
Reward-punishment approach
Problem of co-ordination
Lacks appreciation
Develops conflicting objective
MBO- ReferencesMBO- References
Drucker, P. F. (2007). Management challenges for the 21st century. Routledge.
Drucker, P. F. (1995). People and performance: The best of Peter Drucker onmanagement. Routledge.
Rodgers, R., & Hunter, J. E. (1991). Impact of management by objectives onorganizational productivity. Journal of Applied Psychology, 76(2), 322.
Decision MakingDecision Making
Never make permanent decisions on temporary feelings
”
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Decision Making- DefinitionDecision Making- Definition
“ Decision-making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem”
“ The process of deciding about something important, especially in a group of people or in an organization ” Oxford Advanced Learner’s Dictionary
Decision Making StepsDecision Making Steps
Define the problemAnalysing the problem
Developing alternative solutionsSelecting the best type of alternative
Implementation of the decision Follow up
Monitoring and feedback Decision Making
Decision Making StepsDecision Making Steps
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