what is mbo? and how does INTEL apply it?

1. Management by objectives
Presented by:
Pratidhee palak jha

2. Management by Objectives
 A management model that aims to improve performance of
the company by clearly defining objectives, agreed to by
both the management and employees.
 According to this theory, Goal setting and Action plans
ensures a better participation and commitment among the
employees.
 Helps in alignment of the objectives across the
organization.
 This term was first outlined by Management guru, Peter
Drucker in 1954, in his book “The Practice of Management”.

3. Company chosen :

4. Company’s profile
 Intel is the world’s largest Semiconductor company that
adheres to Management by Objectives (MBO).
 Intel’s annual and quarterly planning process helps
improving an individual and business results. It sets
priorities that are tracked and reviewed throughout the
year.
 MBO motivates employees to focus on Intel’s goal of
launching new products for the consumers in electronics,
healthcare and wireless communication.

5. The “SMART theory”
 The mnemonic SMART is associated with the process of settling objectives in
this way:
1. Specific
2. Measurable
3. Agreed/Achievable/Attainable
4. Realistic/Responsible/Receivable
5. Time bound

6. Manager’s Guide at Intel
 Start with a few well-chosen overriding objectives.
 Set your subordinates objectives that fit in with your overriding objectives.
 Allow your subordinates to set their own key results to enable them to meet
their objectives.
 In MBO system at Intel ; Objectives are written down for each level of
management & individuals are given specific aims and target.