Mbo And Mbe

MBO AND MBE By:~ Bhuvan

INTRODUCTION Definition of MBO Meaning Effective participation of individuals Identifying common goals Determination of objectives

Quote on MBO “MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organizational and individual objectives”. ~Koontz and Weihrich

Main principles of MBO Clear understanding Empowered employees

Features Of MBO It is not only a technique but also a philosophy Setting objectives Provides evaluation and mechanism

Contd…, Creates linkage between organizational goals and individual goals Rewards are governed by the results achieved Continuous process

MBO Strategy : Three Basic Parts

 Assignment of objects  Performance reviews  Appraisal for employees

Stages Of MBO Defining objectives Analyzing Setting standards Setting objectives Aligning targets Establishing the system

Advantages Of MBO Targeted Planning Participation and Collaboration Motivation Efficient Communication Training and Development Performance and Appraisal

Limitations Of MBO Difficulty in teaching MBO philosophy Failure to provide guidelines to goalsetters Difficulty in setting goals Emphasis on short term objectives Danger of inflexibility

MBE

(Management by exception) Introduction*

*

Definition Approaches

to MBE

Basic Intermediate Advanced

SIX PHASES OF MBE Assignment of values Projection of meaningful measurements Make observation Comparison of actual values with expected performance Reporting the balance to management Decision making

Advantages of MBE Availability of time Opportunity to utilize talent Increases confidence and motivation Uses the best knowledge It helps to identify problems before they become big Better organizational cohesiveness and achievement of objectives

Disadvantages of MBE MBE is not puzzle solving You must have the truth You must stay in touch with your people~Management by walking around

~SUMMARY~ MBO System of managing Results in better managing Effective control Failure in explaining philosophy Difficulty in goal setting

Contd…, MBE It’s the idea of minimizing responsibility Obtaining accuracy in results Involves shaping company’s future Managers should be trained properly