Management By Objectives

Management By Results
Presentation by Neeraj Pant
Never tell people how to do things. Tell them what to
do and they will surprise you with their ingenuity.
George S. Patton
Most of us what we call
management consists of making it
difficult for people to get their
work.
Peter Drucker
Concept of MBO
Developed by Peter Drucker
Most widely accepted Philosophy of Management
Democratic style of Management
Better than Classical Theory of Management
By Control. (MBC)
Concept of MBO
Superiors and Sub-ordinates managers jointly
define common goals
Together decide about their areas of responsibility
and expected results.
They use these measures as guides for operating
the unit and assessing the contribution
of each of its member.

Steps in MBO Process
Goal
Setting
Manager-
Subordinate
Involvement
Match Goals
and Resources
Implementation
of Plan
Review and
Appraisal of
Performance
Pros and Cons
Advantages of MBO
Develops result-oriented Philosophy
Raises Employees morale
Acts as a motivational Source
Facilitates Effective Planning
Improves the Quality of Management


Limitations of MBO
Time Consuming
Reward Punishment Approach
Creates Organizational Problems
Develops Conflicting Objectives
New opportunities might lose.
How to make MBO effective
How to make MBO effective
Support from all
Acceptance of MBO by managers and subordinates
Training for managers
Organizational Commitments
Allocation of adequate time and resources
Proper communication channel
Realistic Goals
MBO in Corporate
Xerox
Hewlett Packard (HP)
DuPont
GL India
Intel
Any Question? You are free to ask.
For more information, please go to:
http://kalyan-city.blogspot.com/2010/06/management-
by-objectives-mbo-peter.html
http://www.brainyquote.com/quotes/authors/p/peter_
drucker.html


Thank You
What is not measured cannot
be managed.