Management By Objectives<br />Er.Sartaj Singh Bajwa<br />
Definition<br />MBO is a comprehensive managerial system that integrates many key management activities in a systematic manner , directed towards the effective and efficient achievement of organizational objectives<br />MBO is a result centered managerial process for the effective utilization of material , physical and human resources of the organization by integrating the individual with the organization and organization with the environment<br />Er.Sartaj Singh Bajwa<br />
Features Of MBO<br />MBO focuses sharply on the objectives which a manager is expected to achieve within a specified period<br />Also it emphasis on participative management , an approach which provides motivation to individuals in an organization<br />MBO tries to match objectives and resources<br />MBO is characterized by the participation of managers in objective decision setting and performance reviews<br />Er.Sartaj Singh Bajwa<br />
Process Of MBO<br />Setting of organizational purpose and objectives(why does the organization exist , what should be our business)<br />Concentration on Key result areas(KRA) i.e on market standing , innovation , productivity , worker performance <br />Setting Subordinate`s Objectives (recommendations by the superior for the subordinates objectives )<br />Matching Resources with Objectives ( available resources are matched at the time when objectives are framed )<br />Appraisal ( to measure whether the subordinate is achieving his objective or not )<br />Recycling ( outcome of appraisal at one level is recycled to see if the objectives have been set properly )<br />Er.Sartaj Singh Bajwa<br />
Benefits of MBO<br />Better managing<br />Clarity in organizational action<br />Personnel satisfaction<br />Basis for organizational change<br />Er.Sartaj Singh Bajwa<br />
Limitations Of MBO<br />Time & Cost<br />Failure to teach MBO policy<br />Problem in objective setting ( setting of verified objectives against which performance can be measured)<br />Emphasis on short term objectives <br />Inflexibility ( since objectives cannot be changed )<br />Frustration ( because of non fulfillment of objectives )<br />Er.Sartaj Singh Bajwa<br />
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