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Management by Objectives (MBO)

MBO (management by objectives) is a system where in the superior and the sub ordinate manager of an organization jointly define its common goal, define each individuals major areas of responsibility in terms of their results expected of him and use of these measures a s guides for operating the unit and assessing the contribution of each of its members

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352 views

Management by Objectives (MBO)

MBO (management by objectives) is a system where in the superior and the sub ordinate manager of an organization jointly define its common goal, define each individuals major areas of responsibility in terms of their results expected of him and use of these measures a s guides for operating the unit and assessing the contribution of each of its members

Uploaded by

imad
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Management By Objectives

• The MBO Process


• Where to Use MBO
• Benefits of MBO Program By
Iqra imtiyaz
Management By Objectives (MBO)
MBO (management by objectives) is a system where in the superior and the sub
ordinate manager of an organization jointly define its common goal, define each
individuals major areas of responsibility in terms of their results expected of him
and use of these measures a s guides for operating the unit and assessing the
contribution of each of its members

The principle behind Management by Objectives (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.
 
The MBO Process
Implementi
Setting
Planning
goals
Action
ng Goals

R
e
vi
e
w
in
g
P
er
f
o
r
m
a
n
c
e
Setting goals

• Top manager formulate the overall


organizational goals
• Middle managers work with first line
managers to set goals
• This strengths organizations over all goal and
commitment
Planning action

• During action planning, managers decide on


who what, when where and how details needed
to achieve each objective
Implementing plans

• To control their performance mangers must be


allowed to implement their plans in their own
way
• Element of self control
Reviewing performance

• Managers review the performance of the


people they supervise
• Evaluate the plans to achieve individual and
group goals
• Discuss how can these obstacles can be
removed
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
self-leadership skills and tap their creativity,
tacit knowledge and initiative. Management by
Objectives (MBO) is also used by chief
executives of multinational corporations
(MNCs) for their country managers abroad. 
Benefits of MBO Program
Organizational Development

ns Qua
a t i o li ty i
oper nm
y in Benefits of MBO a na
ge m
c i en c e nt
Effi

Subordinate Development Increased Efficiency of


and Motivation Managers

Comprehensive and Systematic


Framework for Organizations
ADVANTAGES AND DISADVANTAGES
Advantages
• MBO programs continually emphasize what should be done in
an organization to achieve organizational goals.
• MBO process secures employee commitment to attaining
organizational goals.

Disadvantages
• The development of objectives can be time consuming, leaving
both managers and employees less time in which to do their
actual work.
• The elaborate written goals, careful communication of goals,
and detailed performance evaluation required in an MBO
program increase the volume of paperwork in an organization.  
Conclusion
• MBO can be an excellent tool in improving
administrative efficiency in a conducive
organizational environment of transparency,
accountability, responsiveness and good
governance

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