PRESENTATION ON

RELATIONSHIP BETWEEN
“MBO AND ORGANISATIONAL
STRATEGY”

SUBMITTED TO : MRS. RUMIT KAUR

SUBMITTED BY :
1. HARPREET KAUR
2. HARSHMEET SINGH
3. SHIVAM
4. SUMIT
 MBO : MANAGEMENT BY OBJECTIVES
 Management by objectives (MBO) is a strategic management
model that aims to improve organizational performance by
clearly defining objectives that are agreed to by both
management and employees.

{strategic management is the process of setting goals, procedures and

objectives in order to make a company or organization more
competitative}.

 According to the theory, having a say in goal setting and

action plans encourages participation and commitment
among employees, as well as aligning objectives across the
organization.
 BENEFITS OF MBO
• Performance improvement: 
MBO can greatly improve employee performance in the workplace. Detailed
planning leads to better performance and more profit. 

• Sense of identity: 
MBO can give employees a greater sense of identification. Employees feel proud
that they are involved in the goals of the organization and therefore become more
productive employees. Everyone knows what role they play within the organization.

• Career growth: 
Employees have the opportunity to further their careers. Management takes a big
interest in improving and enriching the skills of employees and provides many
opportunities for these trainings to happen. Performance evaluations give
employees feedback. It allows the employee to become stronger in areas where
they are struggling and shows them these areas.
 ORGANISATIONAL STRATEGY
• An organizational strategy is the sum of the actions a
company intends to take to achieve long-term
goals. Together, these actions make up a company's
strategic plan. Strategic plans take at least a year to
complete, requiring involvement from all company
levels.

• One of the main goals of organizational strategy is to

revitalize organizational theory and develop a better
conceptualization of organizational life.
BENEFITS OF ORGANISATIONAL STRATEGY

• BETTER CUSTOMER SERVICE

• CO OPERATIVE NETWORK
• CREATIVITY AND INNOVATION
• EFFECTIVE LEADERSHIP
• ETHICAL BEHAVIOUR AMONG STAFF AND
MANAGEMENT
• JOB PERFORMANCE
• POSITIVE, UPBEAT ATMOSPHERE
 RELATIONSHIP BETWEEN MBO AND
ORGANISATIONAL STRATEGY
* Formulating Long Range Goals: 
Guided by the organization’s mission statement, senior management defines critical
long term objectives and determine how available resources will be used to
accomplish these goals.
This process then leads to strategic planning activities which describe how the
organization will cope with its changing environment
*Developing Specific Objectives: 
In this step, broad organizational objectives are translated into specific measurable
outcomes with clearly stated  time-frames  
Although organizational objectives may include areas such as profitability, market
share, and quality, all objectives must be stated in clear terms

*Developing Departmental Objectives:

Once organizational objectives are clearly specified, each division or department must
develop   a set of specific goals that will enable the organization to achieve its
objectives. Again, these departmental goals must be clearly stated in terms of
measurable outcomes.
• Setting Group and Individual Goals: This step is focused on
developing and implementing group and individual level goals in
a coordinated manner. This process encourages vertical and
horizontal communication in the organization since individual’s
must clarify their   roles and take responsibility for specific
results.
• Formulating and Implementing Action Plans:  Although clearly
stated goals provide a precise description of desired outcome,
action plans are needed to provide a way of attaining goals.
Action plans systematically identify the methods, activities and
resources required to accomplish objectives.
• Reviewing Goal Progress: Finally, mangers must review progress
towards achieving the goal by meeting with subordinates in a
group or individually. During these meetings, managers and
subordinates discuss problems and difficulties involved in
completing the goals and evaluated   individual performance
based on degree to which targeted goals were actually achieved.
THANK YOU