Mbo

Management By Objective Presented

by: Zohra Saleem



“A collaborative process in which managers and employees set mutually agreeable goals, define the responsibility for results, and determine the means of evaluating individual and group performance”.

The MBO Process  The

p roce ss cons is ts of a cycle of f our st eps:  Settin g

goals

 pl an ning

act ion

 imp le me nt ing  rev iewi

pl ans

ng per forma nce

Setting goals  The

first step  Top managers formulate the overall organizational goals  Middle managers work with first line managers to set goals  This strengthens organization’s overall goals, and commitment.

Planning action  The

second step

 During

action planning, managers decide on the

“who, what, when, where, and how” details needed to achieve each objective.

Implementing plans  The  to

third step is implementing

control their performance managers must be

allowed to implement their plans in their own way.  Element

of self control

Reviewing performance  Last

step in MBO  managers review the performance of the people they supervise  evaluate the plans to achieve individual and group goals  discuss how can these obstacles be removed

Benefits of MBO Program  Ability

to focus management and employee attention on specific activities that directly influence performance and goal attainment.  MBO process foster participation, which can encourage stronger commitment and motivation.  It provides an unbiased and systematic way to measure the contribution of managers and employees.

Limitations  Without

the consistent involvement and commitment from top management, an MBO program can’t prove to be effective.  The difficulty of setting specific MBO goals for particular jobs and areas of performance.  MBO program may overemphasize to maintain short term goals and performance , postponing or ignoring activities needed to maintain long term organizational health.

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