This beautiful presentation is all about MBO and linking it with other motivation theories and most material is taken from book of organizational behavior (OB) 15 edition by Stephen P. Robbins.

2. •Waheed Ali (80)
•Sehar(81)
•Qazii Azizullah(72)
•A.D shaikh
•Yasir (09)
Group C (of Hard worker)

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Content of chapter No #07
• Explain What is MBO?
• Linkage MBO to goal setting theory.
• Employee recognition.
• Employee involvement program.
• And Linking with motivation theories.
• What is job redesign and scheduling program.
• Linking job redesign and scheduling to
motivation theories.
• What are Variable pay program.
• Linking variable pay program and expectancy
theory.
• Skilled based pay program.
• Flexible benefits.

4. Objectives of our presentation
• Explain what is MBO
• Four ingredients common to MBO
• Linking MBO to goal setting theory
• Explain important guidelines of goal setting theory
• What is Employee Recognition and its important.
• Keys to giving employee recognition
• Employee involvement program
• Linking employee recognition and reinforcement theory
• Quality circle
• Linking employee involvement program and motivation theories
• What is job redesign and scheduling program
• Representative participation
• participative management

5. Understand the implications of employee
engagement for management in OB

6. Take a glance on these
Look at the questions given below and try answering them.
• What is MBO and why company use it when ever defining gaols and
objectives?
• What is background about MBO? Who is the father of this point of
view?
• How this approach motivate employee toward achievement
• What do you know about goal setting theory
• Who is founder of this theory?
• What are the importance of this theory

7. What is MBO?
Stands for Management by objective;- MBO
literally means management on the basis of
objectives. Peter F.Drucker is the father of this
point of view of management. He explained his
view in 1954 in his book “the practice of
management”.
He said to managers that “Business performance
requires that each job be directed toward the
objectives of the whole business”. Said that
determination of objectives should be collectively
done by all the official concerned including sub
ordinates.

8. Introduction
The concept of collectively determination of
objectives believes that it lead to involvement and
involvement leads to commitment. It means when
all person sit together and lay down the objectives
than it will not be difficult to achieve them.
When all person will try to achieve these objectives
they will have a fallings that they are doing there
own work instead of some one else’s. It means
involvement with objectives leads to attachments
of feeling in this situation there is no need of
external control.

9. Definition
MBO(by Peter F.Drucker)
is a management model
that aims to improve
performance of an
organization by clearly
defining objectives that
are agreed to by both
management and
employees.

10. Four common ingredients
Lets take a glance.
Let us look at each in detail.
Goal specificity1
2 Participative Decision Making
Explicit Period
4 Feedback
3

11. Cont’
Let us look at each in detail.
1
2
3
4
1
A goal must be specific
and It should answer
the who, what, when,
where, why, and how of
the expectations of the
goal
Goal specificity
Participative Decision Making
Explicit Period
Feedback

12. Cont’
Let us look at each in detail.
1 Goal specificity
2
3 Explicit Period
4 Feedback
2 Participative Decision Making The manager and employee
jointly choose the goals and
agree on how they will be
achieved.

13. Cont’
Let us look at each in detail.
1 Goal specificity
2 Participative Decision Making
3
4 Feedback
3 Explicit Period
A Time period must be set
so as to ensure everything
works out within the
specified time frame

14. Cont’
1 Goal specificity
2 Participative Decision Making
3 Explicit Period
44 Feedback
The final ingredients in an
MBO program is
continuous feedback on
performance and goals
that allows individuals to
monitor and correct their
own actions.

15. linking to Goal setting theory

16. Goal setting theory
In 1960’s, Edwin Locke put forward the Goal-setting theory of motivation.
This theory states that goal setting is essentially linked to task
performance. It states that specific and challenging goals along with
appropriate feedback contribute to higher and better task performance.
In simple words, goals indicate and give direction to an employee about
what needs to be done and how much efforts are required to be put in.
specific and difficult goals, with
feedback, lead to higher
performance.

17. Goal-Setting Guidelines
The following are some of the important guidelines
Difficult goals leads to higher performance than are less difficult ones.
Goals are most likely to motivate people toward higher performance
when they are accepted and there is commitment to them.
Specific goals are more likely to lead to higher performance than vague
or very general ones.
Task feedback leads to motivate people toward higher performance.
Goals are most likely to lead to higher performance when people have the
abilities and the feelings of self-efficacy required to accomplish them.

18. • Explain what is MBO
• Explain important guidelines of goal setting theory
• Linking MBO to goal setting theory
• Four ingredients common to MBO
Objectives achieved
• What is Employee Recognition and its important.
• Keys to giving employee recognition
• Employee involvement program
• Linking employee recognition and reinforcement theory
• Quality circle
• Linking employee involvement program and motivation theories
• What is job redesign and scheduling program
• Representative participation
• participative management

20. What is Employee Recognition?

21. Cont’

22. Why Employee Recognition is Important
•Helps to attract and retain key employees.
•Motivates employees to perform at higher levels.
•Increases employee productivity.
•Can increase employee competitiveness.
•Can increase company revenues and profitability.
•Improves business quality and service.
•Improves safety.
•May lower stress.
•Reduces absenteeism and turnover costs.
•Encourages employees to continue education and training.
•improves productivity.

23. There are many methods
and channels for giving
recognition. Although
commonly given by
managers or supervisors.It
can be given by anyone.
For example:
•Peers
•Managers
•Senior Leaders
•Customers
Who Gives Recognition?

24. Keys for giving positive feedback to employees:
As Soon - Timing is important; don't delay praise
4
3
2
1
As Sincere - Do it because you're truly appreciative
As Specific - Give details of the achievement
As Proactive - Don't wait for perfect performance

25. Linking employee recognition and reinforcement theory

26. Employee recognition program in practice
• Best performance of the month
•Award from boss.

27. • Explain important guidelines of goal setting theory
• What is Employee Recognition and its important.
• Linking MBO to goal setting theory
• Four ingredients common to MBO
• Explain what is MBO
Objectives achieved
• Keys to giving employee recognition
• Employee involvement program
• Linking employee recognition and reinforcement theory
• Quality circle
• Linking employee involvement program and motivation theories
• What is job redesign and scheduling program
• Representative participation
• participative management

28. Employee
Involvement
Functions

29. Employee involvement
•A participative process that uses the
input of employees to increase their
commitment to the organization’s
success.
•The direct participation of staff to help
an organization fulfil its mission and
meet its objectives by applying their
own ideas, expertise, and efforts
towards solving problems and making
decisions.
•Regular participation of employee in
deciding how work is done, making
suggestion for improvement, goal
setting, planning and monitoring of
their performance.

30. Functions Of Employee Involvement
Employee motivation
Employee empowerment
Teams and team work
Performance appraisal

31. Participative Management.

32. • Processes of Participative management.
 Information Sharing.
 Training.
 Employee decision making.
 Reward.
Participative Management.

33. 'Representative participation'

34. Quality Circle
• QUALITY CIRCLE IS A SMALL
GROUP
OF PEOPLE.
• WHO VOLUNTARILY
PERFORM QUALITY
IMPROVEMENT ACTIVITIES
AT THE WORK PLACE.
• They agree to meet on a
regular basis to discuss &
solve problems related to
work.
• Employee Participation to
decision making & Problem
solving improve the quality
of work.

35. Major Attribution of Quality Circle
Quality
Circle is a
problem
solving
technique
Quality Circle is
a human
resource
development
technique.
Quality
Circle is a
form of
participation
management

36. Composition of Quality Circle
Members
Circle leaders
Coordinators
Steering committee
Executive committee
Facilitator

37. • Explain important guidelines of goal setting theory
• Linking MBO to goal setting theory
• Four ingredients common to MBO
• Explain what is MBO
Objectives achieved
• What is Employee Recognition and its important.
• Keys to giving employee recognition
• Employee involvement program
• Linking employee recognition and reinforcement theory
• Quality circle
• Linking employee involvement program and motivation theories
• What is job redesign and scheduling program
• Representative participation
• participative management

38. Linking Employee Involvement Programs and
Motivation Theories

39. Linking Employee Involvement Programs and Motivation Theories
•Theory Y is consistent with
participative management.
•In terms of two-factor theory,
employee involvement programs
could provide intrinsic motivation
by increasing opportunities for
growth, responsibility,
and involvement in the work itself

40. Cont’
•And extensive employee
involvement programs clearly have
the potential to increase employee
intrinsic motivation in work tasks.
•For responsibility, achievement,
recognition, growth, and enhanced
self-esteem.

41. Assumption 1: Employees can perceive their job as
relaxing and normal.
Assumption 2: Employees may not require only threat,
external control and coercion to work, but they can use self-
direction
Assumption 3: If the job is rewarding and satisfying, then it
will result in employees’ loyalty and commitment to
organization.
Theory Y is Called Positive theory . According to McGregor,
the perception of managers on the nature of individuals is
based on various assumptions
Assumption 4: An average employee can learn to admit
and recognize the responsibility. In fact, he can even learn
to obtain responsibility.
Theory Y (Participative Management )

42. ERG Theory of Motivation
Clayton Alderfer redefined it in his
own terms. His rework is called as ERG
theory of motivation. He re
categorized Maslow’s hierarchy of
needs into three simpler and broader
classes of needs:
•it includes an individual’s physiological
and physical safety needs.

44. Herzberg’s Two-Factor Theory of Motivation
In 1959, Frederick Herzberg
Created two-factor theory
there are some job factors
that result in satisfaction
while there are other job
factors that prevent
dissatisfaction

45. Hygiene factors- . The hygiene factors symbolized the physiological
needs which the individuals wanted and expected to be fulfilled.
Hygiene factors include:
Pay
Company Policies and administrative policies
Fringe benefits –
Physical Working conditions -
Status
Interpersonal relations -
Job Security -

46. Motivational factors-According to Herzberg, the hygiene factors
cannot be regarded as motivators. The motivational factors yield
positive satisfaction. Motivational factors include:
•Recognition
•Sense of achievement
•promotional opportunities
•Meaningfulness of the work
•Responsibility

47.  Implications of Two-Factor Theory
hygiene factors to avoid employee dissatisfaction. Motivation
Factors to employees are motivated to work and perform harder
and better. Focusing on the motivational factors can improve
work-quality.

48. • Quality circle
• Employee involvement program
• participative management
• Explain important guidelines of goal setting theory
• Linking MBO to goal setting theory
• Four ingredients common to MBO
• Explain what is MBO
Objectives achieved
• What is Employee Recognition and its important.
• Keys to giving employee recognition
• Linking employee recognition and reinforcement theory
• Linking employee involvement program and motivation theories
• What is job redesign and scheduling program
• Representative participation

50. Job redesign is an effort where job responsibilities
and tasks are reviewed, and possibly re-allocated
among staff, to improve output. Redesigning jobs can
lead to improvements in both productivity and in job
satisfaction.
The main objective of conducting job redesigning is to
place the right person at the right job and get the
maximum output while increasing their level
satisfaction.
Job redesign

51. Job Redesign
• To Increase Productivity
• To Increase Job Satisfaction

52. Steps in the Process
First
• clarify exactly what is being done today versus the job description, and
identify any difficulties in completing work.
Second
• determine skills of the employees and their level of fit with their current
positions. Next, re-allocate tasks so that employees have a better fit
between their skills, interests, and position requirements.
Third
• Then provide training as needed to get employees ready for their new
responsibilities.
• . Next, implement the program by providing a new job description to each
employee and having them focus on the tasks in their revised position.

53. Job Rotation
• If employees suffer from
over reutilization of their
work, one alternative is job
rotation , or the periodic
shifting of an employee from
one task to another with
similar skill requirements at
the same organizational level
(also called cross-training ).
• job rotation The periodic
shifting of an employee from
one task to another.
Job Rotation

54. Job Enlargement
•Increasing the number of tasks
performed by a worker
For example
An accountant
task is General Accounting but
he do work of Payroll Also
Job Enlargement

55. Job Enrichment
• Job enrichment Allows
employees to assume more
responsibility, accountability
and independence when
learning new tasks or to
allow for greater
participation and new
opportunities.
•It is an Attempt to Motivate
the Employees
This is Further described as
Vertical Loading of the job
Job Enrichment

56. Flex time
• Non-traditional work
scheduling practice which
allows full-time employees
to choose their individual
starting and quitting times
within certain limits (such as
'not earlier than 5 a.m.' and
'not later than 9 p.m.').
Flextime periods usually
precede or follow a core
time during which all
employees must be present.
Flex time

57. job sharing
• An arrangement that allows
two or more individuals to
split a traditional 40-hour-a-
week job
• One might perform the job
from 8:00 a.m. to noon and
the other from 1:00 p.m. to
5:00 p.m., or the two could
work full but alternate.
job sharing

58. Telecommuting It might be close to the
ideal job for many people. No
commuting, flexible hours, freedom to
dress as you please, and few or no
interruptions from colleagues. It’s
called telecommuting , and it refers to
working at home at least 2 days a
week on a computer linked to the
employer’s office.
(A closely related term—the virtual
office —describes working from home
on a
relatively permanent basis.)
Telecommuting
Telecommuting

59. Achieved
• Explain what is MBO
• Four ingredients common to MBO
• Linking MBO to goal setting theory
• Explain important guidelines of goal setting theory
• What is Employee Recognition and its important.
• Keys to giving employee recognition
• Employee involvement program
• Linking employee recognition and reinforcement theory
• Quality circle
• Linking employee involvement program and motivation theories
• What is job redesign and scheduling program
• Representative participation
• participative management