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MANAGEMENT BY OBJECTIVES

MANAGEMENT BY OBJECTIVES. - MBO. STEPS IN PLANNING. BEING AWARE OF OPPORTUNITIES. NUMBERIZE PLANS BY MAKING BUDGETS. OBJECTIVES OR GOALS. FORMULATE SUPPORTING PLANS. PLANNING PREMISES. CHOOSE AN ALTERNATIVE. COMPARE ALTERNATIVES IN LIGHT OF GOALS SOUGHT. IDENTIFY ALTERNATIVES.

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MANAGEMENT BY OBJECTIVES

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  1. MANAGEMENT BY OBJECTIVES - MBO

  2. STEPS IN PLANNING BEING AWARE OF OPPORTUNITIES NUMBERIZE PLANS BY MAKING BUDGETS OBJECTIVES OR GOALS FORMULATE SUPPORTING PLANS PLANNING PREMISES CHOOSE AN ALTERNATIVE COMPARE ALTERNATIVES IN LIGHT OF GOALS SOUGHT IDENTIFY ALTERNATIVES

  3. THE NATURE OF OBJECTIVES • OBJECTIVES FORM A HIERARCHY • PROCESS OF SETTING OBJECTIVES • OBJECTIVES FORM A NETWORK • MULTIPLICITY OF OBJECTIVES GO TO

  4. HIERARCHY OF OBJECTIVES.** 1.Socio-economic purpose 2. Mission 3. Overall objectives of organisation 4. More specific Overall obj. 5. Division obj. 6. dept. & unit obj 7. Individual obj

  5. DEFINITION: • MANAGEMENT BY OBJECTIVES IS A COMPREHENSIVE MANAGERIAL SYSTEM THAT INTEGRATES MANY KEY MANAGERIAL ACTIVITIES IN A SYSTEMATIC MANNER , CONSCIOUSLY DIRECTED TOWARD THE EFFECTIVE AND EFFICIENT ACHIEVEMENT OF ORGANIZATIONAL AND INDIVIDUAL OBJECTIVES.

  6. MBO-- HOW MBO EVOLVED.. THE SYSTEMS APPROACH TO MBO

  7. SYSTEMS APPROACH • PRELIMINARY SETTING OF OBJECTIVES AT THE TOP • CLARIFICATION OF ORGANISATIONAL ROLES • SETTING OF SUBORDINATE OBJECTIVES • RECYCLING OBJECTIVES • GOTO

  8. PRELIMINARY SETTING OF OBJECTIVES • FIRST STEP IN MBO • DEFINE PURPOSE AND TIME PERIOD • COMPANY’S SWOT ANALYSIS • ESTABLISH MEASURES THAT WILL INDICATE GOAL ACCOMPLISHMENT BACK

  9. CLARIFICATION OF ORGANISATIONAL ROLES • ACCOUNTABILITY IN ACHIEVING GOALS • BACK

  10. SETTING SUBORDINATE OBJECTIVES • INFORM SUBORDINATES • SET UP GOALS WITH SUBORDINATES • SUPERIOR’S ROLE VERY IMPORTANT • SUPERIOR’S MUST BE PATIENT COUNSELLORS • SUPERIOR’S JUDGEMENT AND FINAL APPROVAL IMPORTANT • MUST BE CONSISTENT WITH OTHER GOALS TOO. • BACK

  11. RECYCLING OBJECTIVES • OBJECTIVE SETTING IS A JOINT PROCESS AND INTERACTION. • SOME SUBORDINATE GOALS MAY COME INTO FOCUS • SOME GOALS COULD BE IRRELEVANT • BACK

  12. HOW TO SET UP OBJECTIVES IN DIFFERENT ENVIRONMENTS? • QUANTITATIVE AND QUALITATIVE OBJECTIVES • OBJECTIVES FOR STAFF POSITIONS • GUIDELINES

  13. GUIDELINES • DO THE OBJECTIVES COVER THE MAIN FEATURES OF MY JOB? • IS THE LIST OF OBJECTIVES TOO LONG? IF SO, CAN I COMBINE SOME? • ARE THE OBJECTIVES VERIFIABLE? DO THE OBJECTIVES INDICATE QUANTITY, QUALITY, TIME, COSTS ETC? • ARE PRIORITIES ASSIGNED? • ARE SHORT TERM OBJ CONSISTENT WITH THE LONG TERM ONES? • ARE MY RESOURCES AND AUTHORITY SUFFICIENT FOR ACHIEVING THE OBJECTIVES?

  14. NON VERIFIABLE OBJECTIVES • TO MAKE REASONABLE PROFIT • TO IMPROVE COMMUNICATION • TO IMPROVE PRODUCTIVITY • TO DEVELOP BETTER MANAGERS • TO INSTALL A NEW COMPUTER SYSTEM

  15. VERIFIABLE OBJECTIVES • TO ACHIEVE A RETURN OF INVESTMENT OF 15% AT THE END OF THE CURRENT FISCAL YEAR • TO ISSUE A TWO PAGE MONTHLY NEWSLETTER BEGINNING ON 1/08/05 INVOLVING NOT MORE THAN 20 WORKING HOURS • TO DESIGN & CONDUCT AN MDP FOR 40 HOURS FOR INHOUSE MANAGERS TO BE COMPLETED BY 31/12/2006. ATLEAST 90% OF THE MANAGERS SHOULS PASS THE EXAMINATION HELD.

  16. BENEFITS OF MBO • BETTER MANAGING • CLARIFIES ORGANISATION • PERSONAL COMMITMENT • DEVELOPMENT OF EFFECTIVE CONTROLS

  17. WEAKNESSES OF MBO • FAILURE TO TEACH THE PHILOSOPHY OF MBO • FAILURE TO GIVE GUIDELINES TO GOAL SETTERS • DIFFICULTY OF SETTING GOALS • SHORT TERM NATURE OF GOALS • DANGERS OF INFLEXIBILITY

  18. THE END .

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