Management is defined as the procedure of organizing, directing, planning, and controlling the efforts of

organizational members and of managing organizational sources to accomplish goals.

The functions necessary for management processes are planning, organizing, motivating, and controlling. The
functions involve.

1. Planning - means defining performance goals for the organization and determining what actions and
resources are needed to achieve the goals. Through planning, management defines what the future of the
organization should be and how to get there. The approach to planning includes.
i. Strategic Planning - This type of planning is often carried out by an organization’s top
management and usually creates goals for the entire organization. It analyzes threats to the
organization, evaluates the organization’s strengths and weaknesses and creates a plan of how the
organization can best compete in its environment. usually has a long timeframe of three years or
more.
ii. Tactical Planning - Tactical planning is the shorter-term planning of an objective that will take a
year or less to achieve. It is usually carried out by an organization’s middle management. Tactical
planning is usually aimed at a specific area or department of the organization such as its
facilities, production, finance, marketing, or personnel.
iii. Operational Planning - Operational planning is the process of using tactical planning to achieve
strategic planning and goals. Operational planning creates a timeframe for putting a portion of
the strategic goal into practice operationally.
2. Organizing - Along with planning, a manager's organizational skills can help to ensure a company or
departmental unit runs smoothly. From establishing internal processes and structures to knowing which
employees or teams are best suited for specific tasks, keeping everyone and everything organized
throughout daily operations are important functions of management.

Organization isn't just about delegating tasks efficiently and making sure employees have what they
need to accomplish their tasks, however. Managers also need to be able to reorganize in response to new
challenges. This could come into practice in the form of slightly adjusting the timeline for a project or
re-allocating tasks from one team to another. Or it could mean significantly altering a team's internal
structure and roles in response to company growth.
3. Motivating – Motivation is an important concept in management. It denotes the inspiration, desire and
willingness to satisfy individual needs and achieve objectives. For example, managers may offer
financial incentives to recognize employee achievements and motivate high performance standards from
others. Another example is when management provides positive feedback in appreciation of an
employee's efforts.
 4. Controlling - s the management operation of controlling organizational achievement towards the
accomplishment of organizational intentions. The job of controlling comprises ascertaining criteria of
performance, computing the current performance, comparing this with organized rules and taking
remedial action where any divergence is observed. Here management should ascertain what activities
and outputs are important to progress, how and where they can be regulated and who should have the
power to take remedial response.

2. What is Management by Objectives - Management by Objectives (MBO) is a strategic approach to enhance

the performance of an organization. It is a process where the goals of the organization are defined and conveyed
by the management to the members of the organization with the intention to achieve each objective.

An important step in the MBO approach is the monitoring and evaluation of the performance and progress of
each employee against the established objectives. Ideally, if the employees themselves are involved in setting
goals and deciding their course of action, they are more likely to fulfill their obligations.

1. Define organization goals

Setting objectives is not only critical to the success of any company, but it also serves a variety of purposes. It
needs to include several different types of managers in setting goals. The objectives set by the supervisors are
provisional, based on an interpretation and evaluation of what the company can and should achieve within a
specified time.

2. Define employee objectives

Once the employees are briefed about the general objectives, plan, and the strategies to follow, the managers
can start working with their subordinates on establishing their personal objectives. This will be a one-on-one
discussion where the subordinates will let the managers know about their targets and which goals they can
accomplish within a specific time and with what resources. They can then share some tentative thoughts about
which goals the organization or department can find feasible.

3. Continuous monitoring performance and progress

Though the management by objectives approach is necessary for increasing the effectiveness of managers, it is
equally essential for monitoring the performance and progress of each employee in the organization.

4. Performance evaluation

Within the MBO framework, the performance review is achieved by the participation of the managers
concerned.

5. Providing feedback

In the management by objectives approach, the most essential step is the continuous feedback on the results and
objectives, as it enables the employees to track and make corrections to their actions. The ongoing feedback is
complemented by frequent formal evaluation meetings in which superiors and subordinates may discuss
progress towards objectives, leading to more feedback.
6. Performance appraisal

Performance reviews are a routine review of the success of employees within MBO organizations.

 3. Management by objectives helps employees appreciate their on-the-job roles and responsibilities.
 The Key Result Areas (KRAs) planned are specific to each employee, depending on their interest,
educational qualification, and specialization.
 The MBO approach usually results in better teamwork and communication.
 It provides the employees with a clear understanding of what is expected of them. The supervisors set
goals for every member of the team, and every employee is provided with a list of unique tasks.
 Every employee is assigned unique goals. Hence, each employee feels indispensable to the organization
and eventually develops a sense of loyalty to the organization.
 Managers help ensure that subordinates’ goals are related to the objectives of the organization.

1. Planning - To set goals, managers plan and determine the overall objectives for their business. By doing
so under management by objectives, managers communicate to employees what type of goals to set to
support the company's growth. Planning can also help with risk management, as companies can
anticipate possible problems that may arise in the workplace.
2. Employee involvement - This style of management encourages employees to set their own goals in
collaboration with their immediate supervisor. Because employees have some involvement with the
goal-setting process, they're more motivated to achieve the objectives they set together with
management. Increasing involvement can also be advantageous because employees who engage more
with their work tend to have high job satisfaction.
3. Measurable goals - The goals in MBO are typically measurable meaning that employees and managers
can easily determine when they complete a goal. An example of a measurable goal may be to achieve a
certain percentage improvement in customer satisfaction or increase production by a certain amount.
Measurable goals have a better chance of success because there are deadlines and certain results to
clarify how you can achieve the goal.
4. Stronger criteria for employee evaluations - Employees know what management expects of them under
this management style, and when supervisors evaluate their employees, they use the agreed-upon goals
to explain where an employee succeeds and where they may dedicate more time in the future. Having
criteria for performance reviews that employees are aware of is important for ensuring a fair assessment
of their success in a role. Using the achievement of objectives employees and supervisors create together
to evaluate their performance also helps set clear expectations.
5. Improved communication - Managers and employees work together to set and manage goals, so they
spend more time meeting and communicating on the progress of these goals. This offers more
opportunities for employees to communicate concerns or questions with supervisors. Strong
communication is critical to success and can have other benefits such as higher productivity, better
relationships and job satisfaction.
6. Career Development - When employees understand what to focus their efforts on, they also learn about
any areas in which they might require further education or mentoring. Managers may also learn about
supervisory skills they can develop, such as goal setting or accepting feedback from the people they
supervise. This allows employees to improve their current skills or learn new ones.
7. Improved Company performance - Companies often perform better when management provides clear
direction. Employees know how to use their time effectively, and they understand how their daily work
affects the company. MBO offers many tools to help managers and employees alike improve the overall
functioning of a company.
8. Defined roles - Once employees develop goals with management, they know what management expects
of them. Employees and managers use these objectives to better understand what their role includes and
focus on the important aspects of their positions. The objectives they create can also help assign tasks to
employees.
9. Regular feedback - Managers meet with their employees regularly under this style of management,
which gives managers many opportunities to provide feedback to their employees. This allows
employees to learn how they can improve or where they're doing well. With consistent feedback,
employees can work on developing skills before receiving performance reviews that may outline similar
information but are less frequent.
10. Employee empowerment - Employees can become more independent under this form of management
because expectations for their role are clear. Since they meet to discuss goals, employees require less
guidance on a day-to-day basis. A clear direction empowers employees to complete their work and make
decisions without needing managerial input.