MANAGEMENT BY OBJECTIVES-MBO

MBO is a system in which specific performance objectives are jointly determined by subordinates and their superiors, progress toward objectives is periodically reviewed, and rewards are allocated on the basis of this progress.
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MBO
Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives.

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MBO
MBO was first outlined by Peter Drucker in 1954 in his book 'The Practice of Management'. In the 90s, Peter Drucker himself decreased the significance of this organization management method, when he said: "It's just another tool. It is not the great cure for management inefficiency... Management by Objectives works if you know the objectives, 90% of the time you don't."
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MBO Strategy: Three Basic

MBO Strategy: Three Basic Parts
1. All individuals within an organization are assigned a special set of objectives that they try to reach during a normal operating period. These objectives are mutually set and agreed upon by individuals and their managers. 2. Performance reviews are conducted periodically to determine how close individuals are to attaining their objectives. 3 Rewards are given to individuals on the basis of how close they come to reaching their goals.
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Six MBO Stages

1. Define corporate objectives at board level 2. Analyse management tasks and devise formal job specifications, which allocate responsibilities and decisions to individual managers 3. Set performance standards 4. Agree and set specific objectives 5. Align individual targets with corporate objectives 6. Establish a management information system to monitor achievements against objectives

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Managerial Focus
MBO managers focus on the result, not the activity. They delegate tasks by "negotiating a contract of goals" with their subordinates without dictating a detailed roadmap for implementation. MBO is about setting yourself objectives and then breaking these down into more specific goals or key results.
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Main Principle
The principle behind MBO is 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 complete MBO system is to get managers and empowered employees acting to implement and achieve their plans, which automatically achieve those of the organization

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Where to Use MBO

The MBO style is appropriate for knowledge-based enterprises when your staff is competent. It is appropriate in situations where you wish to build employees' management and selfleadership skills and tap their creativity, tacit knowledge and initiative. MBO is also used by chief executives of multinational corporations (MNCs) for their country managers abroad.
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Balance between Management and Employee

Empowerment
The balance between management and employee empowerment has to be struck, not by thinkers, but by practicing managers. Turning their aims into successful actions, forces managers to master five basic operations: setting objectives, organizing the group, motivating and communicating, measuring performance, and developing people, including yourself.

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These MBO operations are all compatible with empowerment, if you follow the main principle of decentralization: telling people what is to be done, but letting them achieve it their own way. To make the principle work well, people need to be able to develop personally. Further, different people have different hierarchy of needs and, thus, need to be managed differently if they are to perform well and achieve their potential.
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MBO

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Management of Change
Change management is the process of developing a planned approach to change in an organization. Typically the objective is to maximize the collective efforts of all people involved in the change and minimize the risk of failure of implementing the change. The discipline of change management deals primarily with the human aspect of change, and is therefore related to pure and industrial psychology.
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MOC
Many technical disciplines (for example Information technology) have developed similar approaches to formally control the process of making changes to environments. Change management can be either 'reactive', in which case management is responding to changes in the macroenvironment (that is, the source of the change is external), or proactive, in which case management is initiating the change in order to achieve a desired goal (that is, the source of the change is internal). Change management can be conducted on a continuous basis, on a regular schedule (such as an annual review), or when deemed necessary on a program-by-program basis.

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MOC
Change management can be approached from a number of angles and applied to numerous organizational processes. Its most common uses are in information technology management, strategic management, and process management. To be effective, change management should be multi-disciplinary, touching all aspects of the organization. However, at its core, implementing new procedures, technologies, and overcoming resistance to change are fundamentally human resource management issues.
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The psychology of change

Attitudes towards change result from a complex interplay of emotions and cognitive processes. Because of this complexity everyone reacts to change differently. On the positive side, change is seen as akin to opportunity, rejuvenation, progress, innovation, and growth. But just as legitimately, change can also be seen as akin to instability, upheaval, unpredictability, threat, and disorientation. Whether employees perceive change with fear, anxiety and demoralization, or with excitement and confidence, or somewhere in between, depends partially on the individual's psychological makeup, partially on management's actions, and partially on the specific nature of the change.
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MOC
An early model of change developed by Kurt Lewin (1951) described change as a three-stage process. The first stage he called "unfreezing". It involved overcoming inertia and dismantling the existing "mind set". Defense mechanisms have to be bypassed. In the second stage the change occurs. This is typically a period of confusion. We are aware that the old ways are being challenged but we do not have a clear picture to replace them with yet. The third and final stage he called "refreezing". The new mind set is crystallizing and one's comfort level is returning back to previous levels.
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Key Concepts
Below are several well known concepts in which the Change Management practice is rooted. There is some overlapping in these concepts and its practice, the tools derived from these ideas are often used interchangeably.

Theme Centred Interaction (Ruth Cohn) Transactional Analysis Systems Thinking / Family Therapy (Virginia Satir and all the new thinkers, including Bert Hellinger, Fritz Simon, etc.) Neurolinguistic Programming (NLP) (Richard Bandler, John Grinder) Communication Theory (Paul Watzlawik) Whole Systems Change Harrison Owen Neuro-Biology Quantum Physics Human Resource Development Total Quality Management 26/10/2013 Neeraj Lal, Shalby Hospitals Unicist Change Management

Management's role
Management's first responsibility is to detect trends in the macroenvironment so as to be able to identify changes and initiate programs. In general terms, a change program should: Describe the change process to all people involved and explain the reasons why the changes are occurring. The information should be complete, unbiased, reliable, transparent, and timely. Be designed to effectively implement the change while being aligned with organizational objectives, macroenvironmental trends, and employee perceptions and feelings. Provide support to employees as they deal with the change, and wherever possible involve the employees directly in the change process itself.

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Basic Guidelines to Problem Solving and Decision Making

Not all problems can be solved and decisions made by the following, rather rational approach. However, the following basic guidelines will get you started. Don't be intimidated by the length of the list of guidelines. After you've practiced them a few times, they'll become second nature to you -- enough that you can deepen and enrich them to suit your own needs and nature. (Note that it might be more your nature to view a "problem" as an "opportunity". Therefore, you might substitute "problem" for "opportunity" in the following guidelines.)
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GUIDELINES
1. Define the problem This is often

where people struggle. They react to what they think the problem is. Instead, seek to understand more about why you think there's a problem. 2. Look at potential causes for the problem

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3. Identify alternatives for approaches to resolve the problem 4. Select an approach to resolve the problem 5. Plan the implementation of the best alternative (this is your action plan) 6. Monitor implementation of the plan 7. Verify if the problem has been resolved or not

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DECISION-MAKING AND PROBLEM-SOLVING

Life can be viewed as a constant series of decisions. Only by making rational decisions do we "take charge" of our lives. Some decisions seem unimportant but are important. All good decision-making or problem solving methods follow the same process26/10/2013 Neeraj Lal, Shalby Hospitals

1. Understand the problem and goals clearly, so you can consider a wide variety of alternative courses of action. 2. The creation of many possible solutions to the problem. You can't use an inventive solution unless it has been thought of. 3. Collect all the conveniently available information about the probable outcome of each course of action. See if there aren't synergistic ways of combining several promising solutions into potent solutions. 4. Weigh the pros and cons of each course of action (solution), then decide on one that you can commit yourself to fully.

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Decision Making Tips

Just as people are different, so are their styles of decision making. Each person is a result of all of the decisions made in their life to date. Recognizing this, here are some tips to enhance your decision-making batting average. Principles The ethical principles of decision making vary considerably. Some common choices of principles and the methods which seem to match them include: the most powerful person/group decides method: dictatorship or oligarchy everyone participates in a certain class of meta-decisions method: parliamentary democracy everyone participates in every decision direct democracy, consensus decision making

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Decision making in healthcare

In the health care field, the steps of making a decision may be remembered with the mnemonic BRAND, which includes Benefits of the action Risks in the action Alternatives to the prospective action Nothing: that is, doing nothing at all Decision
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