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1. MBOMBO
Management by ObjectivesManagement by Objectives

2.  For achieving organizational goals - organizations areFor achieving organizational goals - organizations are
helping the employees to set performance objectivehelping the employees to set performance objective
 MBO motivates employeesMBO motivates employees
 Emphasis on converting overall objectives into specificEmphasis on converting overall objectives into specific
objectives for organizational units and individual membersobjectives for organizational units and individual members

3.  MBO makes objectives operational by a process inMBO makes objectives operational by a process in
which they cascade down through the organizationwhich they cascade down through the organization
 Organizational overall objectives are translated toOrganizational overall objectives are translated to
specific objectivesspecific objectives
DivisionalDivisional
DepartmentalDepartmental
IndividualIndividual
Organization

4.  MBO worksMBO works
Toplevel
Bottom Level

5. What are the common elements in anWhat are the common elements in an
MBO Program ?MBO Program ?
 Goal specificityGoal specificity
 ParticipativeParticipative
 Decision MakingDecision Making
 Time periodTime period
 Performance feedbackPerformance feedback

6. What is MBO ?What is MBO ?
 A system in which specific performance objectives areA system in which specific performance objectives are
jointly determined by subordinates and theirjointly determined by subordinates and their
supervisors, progress towards objectives is periodicallysupervisors, progress towards objectives is periodically
reviewed, and rewards are allocated on the basis ofreviewed, and rewards are allocated on the basis of
that progressthat progress
 E.g. Reduce Cost , Improve QualityE.g. Reduce Cost , Improve Quality
 Manager and employee jointly choose the goals andManager and employee jointly choose the goals and
agree on how they be achievedagree on how they be achieved

7.  MBO - Continuous feedback on performance andMBO - Continuous feedback on performance and
goalsgoals
 Individual feedback – monitor and correct their ownIndividual feedback – monitor and correct their own
actionsactions

8.  Assessing MBO is complex tasksAssessing MBO is complex tasks
 Difficult Goals & Easy goalsDifficult Goals & Easy goals
 Feedback lets a person know whether his or her levelFeedback lets a person know whether his or her level
of effort is sufficient or needs to be increased .of effort is sufficient or needs to be increased .

9. Setting Employees ObjectivesSetting Employees Objectives
 Identify an Employee’s key job tasksIdentify an Employee’s key job tasks
 Establish specific and challenging goals for each keyEstablish specific and challenging goals for each key
tasktask
 Allow the employee to actively participateAllow the employee to actively participate
 Prioritize goalsPrioritize goals
 Build in feedbacks mechanisms to assess goal progressBuild in feedbacks mechanisms to assess goal progress
 Link rewards to goals attainmentLink rewards to goals attainment

10. Setting Employees ObjectivesSetting Employees Objectives
 Identify an Employee’s key job tasksIdentify an Employee’s key job tasks
 Establish specific and challenging goals for each keyEstablish specific and challenging goals for each key
tasktask
 Allow the employee to actively participateAllow the employee to actively participate
 Prioritize goalsPrioritize goals
 Build in feedbacks mechanisms to assess goal progressBuild in feedbacks mechanisms to assess goal progress
 Link rewards to goals attainmentLink rewards to goals attainment