MANAGEMENT BY OBJECTIVES

Bavijesh ThaliyilM.Ed, Dept. of Education

University of Kerala

”

The best way to predict your future

is to create it

_Peter F Drucker

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MBO- A preludeMBO- A preludeThe term "management by objectives" was first popularized by Peter Drucker in his 1954 book 'The Practice of Management'

“Management by Objectives (MBO) is a process of agreeing upon objectives within an organization so

that management and employees agree to the objectives and understand what they are in the

organization”

Management By Objectives (MBO) can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed.

MBO- Main conceptMBO- Main concept

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 core concept of MBO is planning, which means that an organization and its members are not merely reacting to events and problems but are instead being proactive.

MBO requires that employees set measurable personal goals based upon the organizational Goals. Goals are set down in writing annually and are continually monitored by managers to check progress. Rewards are based upon goal achievement. MBO is a supervised and managed activity so that all of the individual goals can be coordinated to work towards the overall organizational goal

MBO- Main conceptMBO- Main concept

Cascading of organizational vision, goals

and objectives

Specific objectives for each member

Participative decision making

Explicit time period

Performance evaluation and feedback

MBO- ProcessMBO- Process

Determine or revise the organizational objectives

Translating the organizational objectives to employees

Stimulate the participation of employees in the determining of the

objectives

Monitoring of progress

Evaluate and reward achievements

MBO- SMART MethodMBO- SMART Method

Clarity of goals:-With MBO, came theconcept of SMART goals 

MBO- Advantage Vs DisadvantageMBO- Advantage Vs Disadvantage

Advantages DisadvantagesVsVsSuperior-subordinate participation

Joint goal-setting

Joint decision on methodology

Makes way to attain maximum

Support from superior

Time-consuming

Reward-punishment approach

Problem of co-ordination

Lacks appreciation

Develops conflicting objective

MBO- ReferencesMBO- References

Drucker, P. F. (2007). Management challenges for the 21st century. Routledge.

Drucker, P. F. (1995). People and performance: The best of Peter Drucker onmanagement. Routledge.

Rodgers, R., & Hunter, J. E. (1991). Impact of management by objectives onorganizational productivity. Journal of Applied Psychology, 76(2), 322.

Decision MakingDecision Making

Never make permanent decisions on temporary feelings

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Decision Making- DefinitionDecision Making- Definition

“ Decision-making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem”

“ The process of deciding about something important, especially in a group of people or in an organization ” Oxford Advanced Learner’s Dictionary

Decision Making StepsDecision Making Steps

Define the problemAnalysing the problem

Developing alternative solutionsSelecting the best type of alternative

Implementation of the decision Follow up

Monitoring and feedback Decision Making

Decision Making StepsDecision Making Steps