18-12-2012, 06:05 PM
Management by objectives
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Objectives
Objectives are the important ends
toward which organizational and
individual activities are directed.
An objective is verifiable when at the
end of the period one can determine
whether or not the objective has been
achieved.
The Nature of Objectives
Hierarchy of objectives
Key Results Areas: Areas in which
performance is essential for success
Setting objectives and the organizational
hierarchy
Multiplicity of objectives
What is MBO
According to koontz and weihrich define
“MBO is a comprehensive managerial
system that integrates many key managerial
activities in a systematic manner and is
consciously directed toward the effective
and efficient achievement of organizational
and individual objectives.”
Process of MBO
1. Develop overall organizational goals
2. Establish specific goals
3. Devise the action plan
4. Maintain self control
5. Review the progress
6. Appraisal of performance
Advantages of MBO
Helps in setting realistic goals
Helps in making planning effective
Helps in creating an effective
communication network
Facilitates employees’ involvement
Improves employer employee relation
Promotes the system of self appraisal
Effective MBO
Top management support
Educating the managers
Clarity in formulation of objectives
Feedback
Increased participation
Interdepartmental coordination