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A Presentation On

Management By Objectives

From:

Gaurav Drall

Roll No. 05

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PLANNING

HOW TO BEST MEET YOUR MISSION

We must plan for the future, because

people who stay in the present will

remain in the past.Abraham Lincoln

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What Is Planning

Planning is a search problem that requires to find

an efficient sequence of actions that transforms a

system from a given starting state to the goal state.

Planning is the starting point of managementprocess.

Predetermines what the business proposes to

accomplish and how it intends realizing its goals.

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Proper planning accomplishes the following

1. Managing Uncertainty

2. Better Focus

3. Improves Coordination

4. Basis For Control

5. Improves Effectiveness

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Organizational Mission

The mission states the organizations values and

reason for existence.

The mission statement is the basis for all

following goals and plans.

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Goals And Plans

Goals:Specify future ends.

Plans: Specify the means to future ends.

The blueprint for goal achievement.

Specifies the resource allocation,

Schedules, tasks.

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Strategic Goals And Plans

Strategic Goals pertainto the entireorganization.

Strategic Plans definethe action steps thecompany will use toattain strategic goals.

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Tactical Goals And Plans

Tactical Goals apply tomiddle management anddescribe what major subunitsmust do to enable the

organization to meet itsstrategic goals.

Tactical Plans:

Help execute major StrategicPlans.

Cover a shorter period oftime.

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Operational Goals And plans

Operational Goals: The

specific results expected of

small units, workgroups and

individuals.

Operational Plans: developed

at the lower levels of an

organization to specify

actions required to achieve

operational goals and tosupport tactical plans.

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Goal Characteristics

Be specific and measurable in quantitative terms.

Be for a defined period of time.

Contribute most to company performance.

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Types Of Plans

Single-use plans: These

are developed to achieve

objectives that are not

likely to be repeated inthe future. Single-use

plans include programs,

budgets and projects.

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Standing PlanStanding plans are

used to provide

guidance for tasks

performed repeatedly

within theorganization.

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The Planning Process

GOAL SETTING

Identification and formulation ofobjective

DEVELOPING PLANS

Choices between alternative plans

IMPLEMENTATION

Execution of the plan

Revision

OfGoalsAndPlans

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Successful Planning Process

Everyone Participates

Board and staff educated about planning Board and staff explore new ideas

Necessary resources available

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Management By

Objectives

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What Is An Objective?

Objectives are goals, aims or purposes thatorganization wish over varying time periods.

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Management By Objectives (MBO)

A method whereby managers and

employees define objectives for everydepartment, project and person and use

them to monitor subsequent performance.

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Essential Steps For MBO

Set Goals

-The most difficult step.

-Specific target and time frame.

Develop Action Plan

-Course of action for both

workgroup and individual.

Review Progress

-Periodic during the year.

-Take corrective action.Appraise Overall Performance

-How are we doing?

-Do we need to restate our goals?

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Making MBO Process Effective

It must start at the top of the organization.

Employees must be educated about what MBOis.

Managers tell their subordinates whatorganizational goals and plans top management

has established.

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Goals should be achievable within a specified

period of time.

The management should specify the resources

that the subordinate will need.

The employee should be rewarded on goal

attainment.

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