A collaborative process in which managers and employees set mutually agreeable goals, define the responsibility for results and determine the means of evaluating individual and group performance

1. Management By Objective
Presented by:
Zohra Saleem

2.  “A collaborative process in which managers and
employees set mutually agreeable goals, define the
responsibility for results, and determine the means of
evaluating individual and group performance”.

3.  The process consists of a cycle of four
steps:
 Setting goals
 planning action
 implementing plans
 reviewing performance
The MBO Process

4. Setting goals
 The first step
 Top managers formulate the overall
organizational goals
 Middle managers work with first line managers
to set goals
 This strengthens organization’s overall goals,
and commitment.

5. Planning action
 The second step
 During action planning, managers decide on the
“who, what, when, where, and how” details
needed to achieve each objective.

6. Implementing plans
 The third step is implementing
 to control their performance managers must be
allowed to implement their plans in their own
way.
 Element of self control

7. Reviewing performance
 Last step in MBO
 managers review the performance of the
people they supervise
 evaluate the plans to achieve individual
and group goals
 discuss how can these obstacles be
removed

8. Benefits of MBO Program
 Ability to focus management and employee
attention on specific activities that directly
influence performance and goal attainment.
 MBO process foster participation, which can
encourage stronger commitment and motivation.
 It provides an unbiased and systematic way to
measure the contribution of managers and
employees.

9. Limitations
 Without the consistent involvement and
commitment from top management, an MBO
program can’t prove to be effective.
 The difficulty of setting specific MBO goals for
particular jobs and areas of performance.
 MBO program may overemphasize to maintain
short term goals and performance , postponing
or ignoring activities needed to maintain long
term organizational health.

10. THANK YOU