3. WHAT IS MBO?
Management by objectives (MBO) is a
systematic and organized approach that
allows HR to focus on achievable goals and
to attain the best possible results from
available resources.
Management by Objectives (MBO) was first
outlined by Peter Drucker in 1954 in his
book 'The Practice of Management'.
In the 90s, Peter Drucker himself decreased
the significance of this organization
management method, when he said: "It's
just another tool. It is not the great cure for
management inefficiency.
4. CORE CONCEPTS OF MBO
According to Drucker we should "avoid the
activity trap", getting so involved in their
day to day activities that they forget their
main purpose or objective.
participate in the strategic planning process, in
order to improve the implementability of the
plan, and
implement a range of performance systems,
designed to help the organization stay on the
right track.
5. OBJECTIVE VS ACTIVITY
MBO focus on the results, not the activity. They delegate tasks
by "negotiating a contract of goals" with their business
partners without dictating a detailed roadmap for
implementation.
MBO is about setting yourself objectives and then breaking
these down into more specific goals or key results.
6. SETTING OBJECTIVES
"The principle behind this is to ensure that
people know what the organization is trying
to achieve, what their part of the
organization must do to meet those aims,
and how, as individuals, they are expected to
help.
This presupposes that organization's
programs and methods have been fully
considered.
If they have not, start by constructing team
objectives and ask team members to share in
the process.“
7. START CAMPAIGN?
You should master on five basic operations :
1. Setting objectives
2. Organizing the group
3. Motivating and communicating
4. Measuring performance, and
5. Developing people, including yourself.
8. ROLE OF EVERY TEAM
MEMBER
In strategic campaign design you have to ask each yourself
three questions:
What should you hold yourself accountable for?
What information do you need?
What information do you owe the rest of your team?
10. TYPES OF OBJECTIVES
Routine objectives
Innovation objectives
Improvement objectives
The objectives must be:
focused on a result, not an activity
consistent
specific
measurable
related to time
attainable
11. SIX MBO STAGES
Define corporate objectives at board level
Analyze management tasks and devise formal job
specifications, which allocate responsibilities and
decisions to individual managers
Set performance standards
Agree and set specific objectives
Align individual targets with corporate objectives
Establish a management information system to
monitor achievements against objectives
12. Client orientation is defined as an approach to sales
and client-relations in which staff focus on helping customers
to meet their long-term needs and wants. Here, management
and employees align their individual and team objectives
around satisfying and retaining customers.
13. Background history
Development
Key People in the Organization
The functions of the Organization
The values Organization Own
Key Achievements
14. 1. Start at the top
2. Hire people who fit
3. Get everyone involved
4. Trust your team
5. Establish good lines of communication
15. 1. Understand what constitutes a multiple relationship
2. Protect confidentiality
3. Respect people's autonomy
4. Know your supervisory responsibilities
5. Identify your client and role
6. Document, document, document
7. Practice only where you have expertise
8. Know the difference between abandonment and termination
9. Stick to the evidence
10. Be accurate in billing