Selecting missions and objectives as well as the actions to achieve them, which require decision making, that is choosing a course of action from among alternatives

1. Essential of
Planning and
Management by
Objectives

2. Planning:
Selecting missions and objectives as well as the actions to achieve them,
which require decision making, that is choosing a course of action from
among alternatives

3. Types of
Plans
Mission or Purpose:
The basic purpose or function or tasks of an
enterprise or agency or any part of it. For example
At KFC we are committed to customer satisfaction
through offering high quality with excellent
services and good value.We take great pride in
serving each other, our customer and our
communities.We seek continuous improvement in
all that we do.
At IBM, we strive to lead in the invention,
development and manufacture of the industry's
most advanced information technologies, including
computer systems, software, storage systems and
microelectronics. We translate these advanced
technologies into value for our customers through
our professional solutions, services and consulting
businesses worldwide

4. Objectives or Goals:
The ends toward which activity is aimed
Strategies:
The determination of the basic long-term
objectives of an enterprise and the adoption of
courses of action and allocation of resources
necessary to achieve these goals

5. Policies:
General statements or understandings that guide or
channel thinking in decision making
Procedures:
Plans that establish a required method of handling
future activities

6. Rules :
Spell out specific required actions or non-actions allowing no discretion
Programs:
A complex of goals, policies, procedures, rules, task assignments, steps to
be taken, resources to be employed and other elements necessary to carry
out a given course of action

7. Budgets :
A statement of expected results expressed in numerical terms

8. Steps in Planning:
 Being aware of opportunities
 Establishing objectives
 Developing premises
 Determining Alternative Courses
 Evaluating alternative Courses
 Selecting a Course
 Formulating Derivative Plans
 Quantifying Plans By Budgeting

10. Hierarchy of Objectives

11. Multiplicity of Objectives
 Objectives are normally multiple
 State the importance of each goal so that major
goals receive more attention than lesser ones

12. How to set Objectives
 Objectives must be verifiable
 Example of non verifiableObjective:To make a
reasonable profit
 Example of verifiable objective:To achieve a return
on investment of 12% at the end of the current
fiscal year

13. Guidelines for Setting Objectives

15. Management By Objectives
 A comprehensive managerial system that
integrates many key managerial activities in a
systematic manner and is consciously directed
toward the effective and efficient achievement of
organizational and individual objectives
 A formal set of procedures that establishes and
reviews progress toward common goals for
managers and subordinates

16. Elements of MBO
 Commitment to the program:At every level managers
are committed to achieving organizational and
personal objectives
 Top level goal setting: First determine the
organization’s strategy and set goals that resemble
annual objectives
 Individual Goals: In an effective MBO program each
manager and staff member has clearly defined job
responsibilities and objectives
 Participation: Managers and employees must
participate in goal setting
 Autonomy in implementation of plans:The employees
enjoy full freedom in choosing the means for
achieving objectives
 Performance review: Managers and employees
periodically meet to review progress toward the
objectives

17. Benefits of MBO
 Improvement of managing through results oriented
planning
 Clarification of organizational roles and structure as
well as delegation of authority
 Encouragement of commitment to personal and
organizational goals
 Development of effective controls that measure
results and lead to corrective actions
 Focuses on three key concepts – specific goal
setting, feedback on performance and participation

18. Failure of Management by Objectives
 Failure to teach the philosophy of MBO
 Failure to give guidelines to goal setters
 Setting verifiable goals with right degree of
flexibility
 Overuse of quantitative goals
 May downgrade important goals that are difficult
to state in terms of end result
 Danger of forgetting that managing involves more
than goal setting