Management by Objectives (MBO) is a management model that aims to improve organizational performance by defining objectives agreed upon by management and employees. The MBO process involves identifying objectives, setting subordinate goals, periodic meetings to review objectives, and a performance appraisal. Advantages of MBO include clear objectives that create commitment and teamwork, while periodic performance reviews help assess progress. However, limitations include a focus only on results, objectives sometimes changing during the process, and potential clashes between subordinates and managers.

1. Management by Objective
Created by-
Supriya

2. What do we mean by MBO i.e., Management by
Objective?
Management by objectives (MBO) 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.

3. Steps involved in MBO process.
• Step 3• Step 4
• Step 2• Step 1
Identify
Objectives
Set
Subordinate
Goals
Periodic
Meetings
Performance
Appraisal

4. Lets us get familiar with Elements of MBO!

5. Determination of Enterprise Objective
Manager’s Recommended Goal
Subordinates Suggestions for Goal
Establishment
Periodic
Review of
Objectives
Feedback
Process
Revision of
Objectives
Agreement between Manager and
Subordinates
5

6. Advantages of MBO:
1.Objectives are clearly visible to every one
working for the organisation .
2. A feeling of commitment and teamwork
is achieved.
3. Periodic review of performances.

7. Limitations of MBO:
1. Emphasizing more on results .
2. Sometimes objectives are discarded between
the ongoing process .
3. Clashes between subordinates and Managers.