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Mbo and Mbe

MBO and MBE involve managing organizations through setting objectives and monitoring exceptions. MBO integrates managerial activities through common goals and objectives, but can be difficult to implement fully due to challenges explaining the philosophy and setting goals. MBE focuses on obtaining accurate results by monitoring exceptions rather than direct control, and involves shaping the future by addressing issues before they become problems. Both require properly training managers.

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ajayzizou
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7K views

Mbo and Mbe

MBO and MBE involve managing organizations through setting objectives and monitoring exceptions. MBO integrates managerial activities through common goals and objectives, but can be difficult to implement fully due to challenges explaining the philosophy and setting goals. MBE focuses on obtaining accurate results by monitoring exceptions rather than direct control, and involves shaping the future by addressing issues before they become problems. Both require properly training managers.

Uploaded by

ajayzizou
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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MBO AND MBE

By:~ Bhuvan
INTRODUCTION
Definition of MBO
Meaning
Effective participation of
individuals
Identifying common goals
Determination of objectives
Quote on MBO
“MBO is a comprehensive
managerial system that integrates
many key managerial activities in a
systematic manner and that is
consciously directed towards the
effective and efficient achievement of
organizational and individual
objectives”.
~Koontz and Weihrich
Main principles of MBO

Clear understanding
Empowered employees
Features Of MBO
It is not only a technique but also
a philosophy
Setting objectives
Provides evaluation and
mechanism
Contd…,
Creates linkage between
organizational goals and
individual goals
Rewards are governed by the
results achieved
Continuous process
MBO Strategy : Three
Basic Parts

 Assignment of objects
 Performance reviews
 Appraisal for employees
Stages Of MBO
Defining objectives
Analyzing
Setting standards
Setting objectives
Aligning targets
Establishing the system
Advantages Of MBO
Targeted Planning
Participation and Collaboration
Motivation
Efficient Communication
Training and Development
Performance and Appraisal
Limitations Of MBO

Difficulty in teaching MBO


philosophy
Failure to provide guidelines to goal-
setters
Difficulty in setting goals
Emphasis on short term objectives
Danger of inflexibility
MBE
(Management by
exception)
Introduction*
*

Definition
Approaches to MBE
Basic
Intermediate
Advanced
SIX PHASES OF MBE
Assignment of values
Projection of meaningful measurements
Make observation
Comparison of actual values with
expected performance
Reporting the balance to management
Decision making
Advantages of MBE
Availability of time
Opportunity to utilize talent
Increases confidence and motivation
Uses the best knowledge
It helps to identify problems before
they become big
Better organizational cohesiveness
and achievement of objectives
Disadvantages of MBE

MBE is not puzzle solving


You must have the truth
You must stay in touch with
your people~Management by
walking around
~SUMMARY~
MBO
System of managing
Results in better managing
Effective control
Failure in explaining philosophy
Difficulty in goal setting
Contd…,
MBE
It’s the idea of minimizing
responsibility
Obtaining accuracy in results
Involves shaping company’s
future
Managers should be trained
properly

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