The document discusses the management process of objective setting, emphasizing the importance of aligning individual, departmental, and corporate goals to create a network of expected outcomes. It highlights the introduction of Management by Objectives (MBO) in the 1950s and outlines a step-by-step process for setting and reviewing goals. Additionally, the document addresses the benefits and challenges associated with implementing MBO in organizations.

1. MANAGEMENT PROCESS
H Ramasubramanian
Objective setting

2. Presentation by
Objective setting
.
2UNIT–4 Objective setting - MANGEMENT PROCESS

3. Presentation by
Objective setting
.
3UNIT–4 Objective setting - MANGEMENT PROCESS

4. Presentation by
Objective setting
.
4UNIT–4 Objective setting - MANGEMENT PROCESS

5. Presentation by
Objective setting
.
5UNIT–4 Objective setting - MANGEMENT PROCESS

6. Presentation by
Objective setting
.
6UNIT–4 Objective setting - MANGEMENT PROCESS

7. Presentation by
Objective setting
.
7UNIT–4 Objective setting - MANGEMENT PROCESS
Networking of Objectives
• Objectives and planning programs are co-existential and co-relational.
• They support one another to form a network of expected outcomes and results.
• If the objectives are not linked with each other and if they do not support one another,
• It is possible that individuals may carryout their plans, keeping in mind only their
individual or departmental goals.
• This may be harmful for the organisation.

8. Presentation by
Objective setting
MBO was introduced in the 1950s by Drucker.
Objective setting is necessary and important
Participative goal setting, self control and self evaluation are important.
8UNIT–4 Objective setting - MANGEMENT PROCESS

9. Presentation by
Objective setting
.
9UNIT–4 Objective setting - MANGEMENT PROCESS
Step 1: Set Goals
Take Corrective Action
Review Progress
Step 3: Review Progress
Appraise Performance
Step 4: Appraise Overall Performance
Action Plans
Step 2: Develop Action Plans
• Corporate Strategic Goals
• Departmental Goals
• Individual Goals

10. Presentation by
Objective setting
.
10UNIT–4 Objective setting - MANGEMENT PROCESS
Benefits of MBO Problems with MBO
1. Manager and employee efforts
are focused on activities that will
lead to goal attainment.
1. Constant change prevents MBO from
taking hold.
2. Performance can be improved at
all company levels.
2. An environment of poor employer-
employee relations reduces MBO
effectiveness.
3. Employees are motivated. 3. Strategic goals may be displaced by
operational goals.
4. Departmental and individual goals
are aligned with company goals.
4. Mechanistic organizations and values
that discourage participation can
harm the MBO process.
5. Too much paperwork saps MBO
energy.

11. Presentation by
Objective setting
.
11UNIT–4 Objective setting - MANGEMENT PROCESS