This document provides an overview of Management by Objectives (MBO). It discusses that MBO was popularized by Peter Drucker in 1954 as a systematic approach for management to focus on achievable goals. It outlines the SMART criteria for setting objectives and principles of MBO including cascading goals, specific objectives for members, and participative decision making. The document also describes the process of MBO and benefits such as better planning, clarity and basis for evaluation, as well as limitations like time/cost and problems setting objectives.

1. MANAGEMENT
BY OBJECTIVES
PRESENTED BY:
DR. KALYAN SINGH
GUIDED BY: DR. KALYAN REEDY SIR

2. CONTENTS
 INTRODUCTION
 GUIDELINES FOR SETTING OBJECTIVES
 MANAGEMENT BY OBJECTIVES
PRINCIPLES
 PROCESS OF MBO
 BENFITS OF MBO
 LIMITATION OF MBO
 CONCLUSION

3. INTRODUCTION
 The term Management by objectives was first
popularized by Peter Drucker in his 1954
book, “The Practice of Management”.
 Management by objective systemic and
organized approach that allow the
management to focus on achievable goal and
to attain the best possible result from available
resource.

4. GUIDELINES FOR
SETTING OBJECTIVES:
 SMART Criteria - Specific, Measurable,
Achievable, Relevant, Time-Specific
 Clear and Realistic
 Results oriented
 Established before the fact
 Verifiable
 Agreed both by managers and the associates
 Written
 Consistent with focus

5. MANAGEMENT BY
OBJECTIVES PRINCIPLES:
 Cascading of goals and objectives
 Specific objectives for each member
 Participative decision making
 Explicit time period
 Performance evaluation and feedback

6. PROCESS OF MBO

7. BALANCE BETWEEN MANAGEMENT AND
EMPLOYEE EMPOWERMENT:
 setting objective
 organizing the groups
 Motivating and communicating
 Measuring the performance
 Developing the people including yourself
INDIVIDUAL RESPONSIBILITY:
 To create the link between top level to lower level manager
 Responsibility for objective
 Important for knowledge based
 Today’s worker are self manager

8. BENFITS OF MBO
 Better managerial planning and use of
employee
 Clarity in organizational action
 Personnel satisfaction
 Basis for organization change
 A basis for promotion and evaluation

9. LIMITATION OF MBO
 Time and cost
 Failure to teach the mbo philosophy
 Problem in objective setting
 Emphasis on short term objectives
 Inflexibility
 Frustration

10. CONCLUSION
 Necessity of performance management
 For maximum utilization of resource
 Benefit accrue to large section of society
 Resource have opportunity cost

11. SOURCES
 by:book James A.F. Stoner