Welcome to Management!

Professor Padmalini Singh

Management by Objective

Definition
MBO is a process of defining objectives
within an organization
so that management and employees
agree the objectives
and understand what they need to do
in the organization in order to
achieve them.

 The term management by objectives

was first popularized by Peter
Drucker in his 1954 book The
Practice of Management.

Features
Participativ
e decision
making

Attains
maximum
results

Joint goal
setting

MBO

Measuring
Actual and
Standard
performance

Converting
organization
al objective
into Personal
objective

Process
Preliminary Goal Setting

Setting subordinate objectives

Matching goals and resources

Implementation of plans
Review and appraisal of
performance

Advantages
Develops
resultoriented
philosophy

Formulati
on of
dearer
goals

Facilitate
s
objective
appraisal

Raises
employee
morale

Facilitate
s
effective
planning

Acts as
motivationa
l force

Facilitates
effective
control

Facilitate
s
personal
leadershi
p

Limitations
Time of
Reward-punishment
Increases
Creates
Develops
Problem
Lacks
Problems
Lack
consuming
durability
appreciation
organizational
ofrelated
conflicting
paper-work
co-ordination
to goal-setting
approach
objectives
problems

THATS ALL FOR TODAY