ASHOK KUMAR SINGHPGDM1ST SEMESTER

MANAGEMENT BY OBJECTIVE(MBO)

MBO

MBO (also called ‘appraisal by result’ planning by objective, goal management, work planning and review, ‘joint target setting’ etc.)is an overall philosophy of management that concentrates on measurable goals and end result .

MBO is based on the assumption that people perform better when they know what is expected of them and can relate their personal goals to the organisational objectives.

FEATURESMBO emphasiases participation in

setting goals that are tamengible ,verifiable and measurable.

MBO focuses attention on what must be accomplished (goals ) rather than how it is to be methods

MBO is a systematic and rational technique that allows management to attain maximum results from available resourses by focusing on achievable goals.

The Process1. Goal-settingGoal –setting: Any MBO programme must

start with an absolute enthusiastic support of top management .According to Robert Albanes a useful approach to setting goals may involves the following steps:

1. Know your own goals2. Meeting with your subordinates3. Climate for goal setting4. Second meeting with subordinates

2.Action plan

The action plan is the means by which an objective is achieved.The action plan gives direction and ensures unity of purpose to organisational activities .

It will state in detail exactly what is to be done ,how the subordinate will proceed, what steps will be taken

It provides a specific answer to the question ;what is to be done?

Appraising performance( final review)

This is the last phase of the MBO programme.

In this step , the actual result are measured against predetermined standards

Appraisals can be really useful , if the person being evaluated knows and accepts in advanse the grounds upon which he is being appraised.

Establish Long term Goals

Establish specificPerformance objectives

Develop Action plan

Appraise result

Take Corrective action

MBO BENEFITSClear goals Better planningFacilitates controlBetter moraleObjective appraisalResult – oriented philosophy

MBO LIMITATIONS

Pressure –orientedTime consumingIncrease paperworkGoal –setting problemsOrganisational problems

THE END

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