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MISSION AND

OBJECTIVES

Be sure and sincere about what

you want to achieve and even skyis not the limit.

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MISSION - DEFINED

This is generally an enduring statement

of the organization the extent of which

embodies the decision makersphilosophy; it implies the image which

the organization seeks to project.

Mission has external orientation and

relates the organization to the society inwhich it operates

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Example:Mission of Unilever

Hindustan Unilevers commitment to national

priorities has ensured that the company is a

part of the peoples lives at the grassroot level ,making a difference to India and to the Indians-

in depth , in width and in size. Hindustan

Unilever has always identified itself with the

nations priorities: employment generation ,development of backward area,agricultural

linkages,exports, contribution to exchequer etc.

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Purpose:Defined

Purpose is also externally focused but it

relates to that section of the society to

which it serves.; it defines the businesswhich the company will undertake.

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Example : Purpose of Unilever

Our purpose in Hindustan Unilever is to

meet the everyday needs of the people

everywhere- to anticipate the aspirationsof consumers and customers and to

respond creatively and competitively with

branded products and services which

raise the quality of life.

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Objectives- Managerial

PespectiveObjectives are goals , aims or purposes

that the organisation wish over varying

periods of times.A managerial objective is an intended

goal that prescribes definite scope and

suggests direction the planning efforts of

a manager .

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Objectives Vs Goals

Dimension Objectives Goals

1) Time Frame Timeless Temporary

2) Specificity General More specific

3) Focus Externalenvironment

Internal

4) Measurement Both may be

quantified

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THE NATURE & PURPOSE

OF MBO MBO is concerned with goal setting and

planning for individual managers and their units.

The essence of MBO is a process ofjo in tgoal

setting between a supervisor and a

subordinate.

Managers work with their subordinates to

establish performance goals that are consistent

with higher organizational objectives.

MBO helps clarify the hierarchy of objectives as

a series of well-defined means-ends chains.

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THE PROCESS OF MBO

Starting the

MBO

Program

Establishment of

Organizational

Goals and

Plans

Collaborative

Goal Setting

and Planning

Resources

Counseling and

Coaching

Verifiable

Goals and

Clear Plans

Meeting

Communicting

Organizational Goals

and Plans

Periodic

Review

Evaluation

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If MBO is to be successful, i tmus t star t at

the top of the organization

top managers must communicate why

they have adopted MBO, what they think it

will do, and that they are committed to it.

Employees must be educated about what MBO

is and what their role in it will be.

Managers must implement MBO in a way that is

consistent with overall organizational goals. Key result Areas (KRAs)

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THE MBO PROCESS

Collaborativegoal setting and planning are the

essence of MBO. This involves several steps:

Managers tell their subordinates what organizational and

unit goals and plans top management has established. Managers meet with their subordinates on a one-to-one

basis to arrive at a set of goals for each subordinate that

both develop and to which both are committed.

Goals are refined to be as verifiable as possible and

achievable within a specified period of time.

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THE MBO PROCESS

Goals must be written and very clearly stated.

Plans developed to achieve the goals must directly

relate to each goal managers must play the roleofcounselors in the goal-setting and planning

meeting.

The meeting should specify the resources that hesubordinate will need to implement his/her plans

and work effectively toward goal attainment.

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THE MBO PROCESS

Conducting periodic reviews assubordinates are working toward theirgoals is advisable.

At the end of the period, the managermeets with each subordinate to review

the degree of goal attainment. Thereasons for both success and failure areexplored. The employee is rewarded onthe basis of goal attainment.

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THE EFFECTIVENESS OF

MBO - STRENGTHS Organizations create a powerful motivational

system for their employees by adopting MBO.

Through the process of discussion and

collaboration, communication is greatly

enhanced.

With MBO performance appraisal may be done

more objectively.

MBO focuses attention on appropriate goals

and plans.

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THE EFFECTIVENESS OF

MBO - STRENGTHS MBO helps identify superior managerial talent

for future promotion.

MBO provides a systematic management

philosophy that can have a + effect on the

overall organization.

MBO facilitates control through the periodic

development and subsequent evaluation of

individual goals and plans.

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THE EFFECTIVENESS OF

MBO - WEAKNESSES The major reason for MBO failure is lack o f top

management su ppor t after deciding using

it, its implementation is delegated to lower

management goals and plans cascadingthroughout the organization may not be those of

top management.

Some firms may overemphasize quantitativegoals and burden their systems with too much

paper work and record keeping.

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THE EFFECTIVENESS OF

MBO - WEAKNESSES Some managers will not or cannot sit down and

work out goals with their subordinates they

assign or suggest goals and plans to their

people resentment and lack of commitmentto the MBO program.

MBOwell articulated objectives clarity of

purpose, but also a certain rigidity

organization must be flexible to survive morefluid and yielding objectives loss of clarity.

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Case of MBO GLAXO

SMITHKLINE BEECHAM 1973 appointment of MBO director

Identification of corporate objectives and

KRAsGroup approach to objective setting at

corporate , divisional and departmental

level.

Initially 48 work groups later 37.

Conversional from functional to divisional

basis in 1974- pharma, foods and

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