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Presentation Contents
Unit 1 Introduction
Unit 2 Features
Difficulties
Effective
Conclusion
What is MBO ?
It is defining of objectives for each employee and then to compare and to direct their performance against the objectives which have been set. In other words it is a process where by employees and the superiors come together to identify their common goals.
Features of MBO
Outlined by Peter Drucker in 1954. Motivation. Better communication. Harmonious relations. Clarity of Goals. Sense of belongingness.
Core Concepts
Managers should avoid the activity trap. Objective is to involve each and every employee in strategic planning . Make managers implement range of performance systems. Objectives can be set in all domain of activities. MBO managers focus on results not on activities.
Principles of MBO
Cascading of organisnal goals and objectives.
SMART METHOD
S specific M Measurable A Achievable R Realistic
T Time related
Presentation Contents
Unit 1 Introduction
Unit 2 Features
Difficulties
Effective
Conclusion
MBO Process
Reviewing Performance
MBO
Planning
Implementation
What is an objective? Aim: the goal intended to be attained (and which is believed to be attainable).
MBO devices a process by which objectives flow down through the organization. The organizations overall objectives are translated into specific objectives for each succeeding level.
Action plan
Action plan:
The action plan states specifically what steps or tasks will be accomplished to achieve the objective.
It includes a schedule with deadlines for significant actions, resources necessary to achieve the objective, and methods to measure the objective.
Preparing action plans addresses potential problem areas, considers impacts of the actions, and ultimately leads to maximization of the chances of success while implementing the plan.
Plan Implementation
Plan implementation:
To control their performance managers must be allowed to implement their plans in their own way.
Including employees, who are directly involved or those who are indirectly affected by that decision, in the implementation of a decision, will help foster their commitment.
Presentation Contents
Unit 1 Introduction
Unit 2 Features
Difficulties
Effective
Conclusion
Practical Utility
Better Planning Setting of Goals Active Participation Improves Goal Clarity Planning directed towards objectives Better Organization Change in job descriptions Defining objectives, responsibility & authority. Higher Productivity Concentration of Important Goals.
Difficulties in Implementation
Hesitation to change Different from traditional thinking & practices. Lack of Preparation Poor Planning Involving all levels Imposing Goals Unrealistic goals Unnecessary Paperwork Lengthy Process Neglecting the goals of individuals
Training of Managers
Clarity of Purpose Encouraging participation Delegating Authority Overall Integration.
Presentation Contents
Unit 1 Introduction
Unit 2 Features
Difficulties
Effective
Conclusion
Problem Solving
The manager must recognize problems, make a decision, initiate an action, and evaluate the results. A problem exists whenever there is a difference between what actually happens and what the manager wants to have happen. A problem can be referred to as an obstacle on the path towards the goals. Problem solving is the process of taking corrective action in order to meet objectives. It is the process of eliminating the obstacle on the path toward the goal.
Identify objectives
Choice
Conclusion
Clear objectives must be set by each enterprise.
Thank You.