Management By Objectives

Management By ResultsPresentation by Neeraj Pant

Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.

George S. Patton

Most of us what we call management consists of making it difficult for people to get their work.

Peter Drucker

Concept of MBO• Developed by Peter Drucker• Most widely accepted

Philosophy of Management• Democratic style of

Management• Better than Classical Theory

of Management By Control. (MBC)

Concept of MBO• Superiors and Sub-ordinates

managers jointly define common goals

• Together decide about their areas of responsibility and expected results.

• They use these measures as guides for operatingthe unit and assessing the contribution of each of its member.

Steps in MBO Process

Goal Setting

Manager-Subordinate Involvement

Match Goals and Resources

Implementation of Plan

Review and Appraisal of Performance

Pros and Cons

Advantages of MBO

• Develops result-oriented Philosophy

• Raises Employee’s morale• Acts as a motivational

Source• Facilitates Effective Planning• Improves the Quality of

Management

Limitations of MBO

• Time Consuming• Reward Punishment

Approach• Creates Organizational

Problems• Develops Conflicting

Objectives• New opportunities might

lose.

How to make MBO effective

How to make MBO effective

• Support from all• Acceptance of MBO by

managers and subordinates• Training for managers• Organizational Commitments • Allocation of adequate time

and resources• Proper communication

channel• Realistic Goals

MBO in Corporate• Xerox• Hewlett Packard (HP)• DuPont• GL India• Intel

Any Question? You are free to ask.

For more information, please go to:

http://kalyan-city.blogspot.com/2010/06/management-by-objectives-mbo-peter.html

http://www.brainyquote.com/quotes/authors/p/peter_drucker.html

Thank You

What is not measured cannot be managed.