Management by Objectives (MBO) is a process whereby employees set objectives that are agreed upon with superiors and aligned with organizational goals. The core concept of MBO is planning so that organizations and employees are proactive rather than reactive. MBO requires employees to set measurable personal goals based on organizational goals, which are monitored by managers and rewarded upon achievement. The MBO process involves determining organizational objectives, translating them to employees, stimulating employee participation, monitoring progress, and evaluating and rewarding achievements.

1. MANAGEMENT
BY OBJECTIVES
Bavijesh Thaliyil
M.Ed, Dept. of Education
University of Kerala

2. ”
The best way to
predict your
future is to
create it
_Peter F Drucker
“

3. MBO- A preludeMBO- A prelude
The term "management by objectives" was first popularized by Peter
Drucker in his 1954 book 'The Practice of Management'
“Management by Objectives (MBO) is a process of
agreeing upon objectives within an organization so
that management and employees agree to the objectives
and understand what they are in the organization”
Management By Objectives (MBO) can be defined as a process
whereby the employees and the superiors come together to identify
common goals, the employees set their goals to be achieved, the
standards to be taken as the criteria for measurement of their
performance and contribution and deciding the course of action to be
followed.

4. MBO- Main conceptMBO- Main concept
To make sure that everybody within the organization has a clear
understanding of the aims, or objectives, of that organization, as well as
awareness of theirown roles and responsibilities in achieving those aims.
The core concept of MBO is planning, which means that an organization
and its members are not merely reacting to events and problems but are
instead being proactive.
MBO requires that employees set measurable personal goals based
upon the organizational Goals. Goals are set down in writing annually and
are continually monitored by managers to check progress. Rewards are
based upon goal achievement.
MBO is a supervised and managed activity so that all of the individual
goals can be coordinated to work towards the overall organizational goal

5. MBO- Main conceptMBO- Main concept
Cascading of
organizational vision, goalsand
objectives
Specific objectivesfor each member
Participativedecision making
Explicit timeperiod
Performanceevaluation and feedback

6. MBO- ProcessMBO- Process
Determine or revise the organizational
objectives
Translating the organizational objectives to
employees
Stimulate the participation of employees in
the determining of the objectives
Monitoring of progress
Evaluate and reward achievements

7. MBO- SMART MethodMBO- SMART Method
Clarity of goals:-
With MBO, came the
concept of SMART goals

8. MBO- Advantage Vs DisadvantageMBO- Advantage Vs Disadvantage
Advantages DisadvantagesVsVs
Superior-subordinate participation
Joint goal-setting
Joint decision on methodology
Makes way to attain maximum
Support from superior
Time-consuming
Reward-punishment approach
Problem of co-ordination
Lacks appreciation
Develops conflicting objective

9. MBO- ReferencesMBO- References
Drucker, P. F. (2007). Management challenges for the 21st century.
Routledge.
Drucker, P. F. (1995). People and performance: The best of Peter
Drucker on
management. Routledge.
Rodgers, R., & Hunter, J. E. (1991). Impact of management by
objectives on
organizational productivity. Journal of Applied Psychology, 76(2),
322.

10. Decision MakingDecision Making
Never make permanent
decisions on temporary feelings
”
“

11. Decision Making- DefinitionDecision Making- Definition
“Decision-making involves the selection of a course of action from
among two or more possible alternatives in order to arrive at a
solution for a given problem”
“The process of deciding about something important, especially in a
group of people or in an organization ” Oxford Advanced Learner’s Dictionary

12. Decision Making StepsDecision Making Steps
Define the problem
Analysing the problem
Developing alternative solutions
Selecting the best type of alternative
Implementation of the decision
Follow up
Monitoring and feedback
Decision Making

13. Decision Making StepsDecision Making Steps