Management by Objectives (MBO) is a process that sets goals for employees to provide direction and define roles and responsibilities. It guides employees to deliver their best work and achieve targets on time. MBO helps employees understand duties and has KRAs designed for interests and qualifications. Employees know what is expected, avoiding confusion. It also ensures effective communication and motivated, committed employees through benchmarking with targets set by superiors. However, MBO may ignore company culture and conditions, requires full top management support, and manager skills in coaching. Integration with other systems like budgeting is also poor.

1. MANAGEMENT
BY OBJECTIVES

2. Presented by #Aamir Mirza

3. WHAT IS MANAGEMENT BY
OBJECTIVE ?
The process of setting objectives in the
organization to give a sense of
direction to the employees is called
as management by objectives.
It refers to the process of setting
goals for the employees so that they
know what they are supposed to do
at the workplace.

4. Management by objective defines roles and
responsibilities for the employees and help
them chalk out their future course of action
in the organization.
Management by objective guides the
employees to deliver their level best and
achieve the targets within the stipulated
time frame.

6. NEED FOR MANAGEMENT BY
OBJECTIVES

7. The management by objectives process
helps the employees to understand their
duties at the workplace.
KRAs are designed for each employees
as per their interest, specialization and
educational qualification.

8. The employees are clear as to what is
expected out of them.
Management by objectives process leads to
satisfied employees. It avoid job mismatch
and unnecessary confusions later on.
Management by objectives ensures
effective communication amongst the
employees. It leads to a positive ambience
at the workplace.

9. The Management by objectives process
leads to highly motivated and committed
employees.
 The Management by objectives process set a
benchmark for every employee. The
superiors set targets for each of the team
members. Each employee is given a list of
specific tasks.

10. LIMITATIONS OF MANAGEMENT BY
OBJECTIVES PROCESS
 It sometimes ignores the prevailing culture and
working conditions of the organization.
 Management by objective can only succeed if it
has the complete support of the top
management.
 Most managers may not be sufficiently skilled
in interpersonal interaction such as coaching
and counseling , which is extensively required.

11.  The integration of Management by objective system
with other systems such as forecasting and budgeting
etc., is very poor. This makes the overall functioning
of all systems mare difficult.
 Group goal achievement is more difficult.