concept of management by objective (mbo)
DESCRIPTION
A presentation on MBO. MBO is an approach to management developed by Peter F Drucker.TRANSCRIPT
Management By Objectives
Management By ResultsPresentation by Neeraj Pant
Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.
George S. Patton
Most of us what we call management consists of making it difficult for people to get their work.
Peter Drucker
Concept of MBO• Developed by Peter Drucker• Most widely accepted
Philosophy of Management• Democratic style of
Management• Better than Classical Theory
of Management By Control. (MBC)
Concept of MBO• Superiors and Sub-ordinates
managers jointly define common goals
• Together decide about their areas of responsibility and expected results.
• They use these measures as guides for operatingthe unit and assessing the contribution of each of its member.
Steps in MBO Process
Goal Setting
Manager-Subordinate Involvement
Match Goals and Resources
Implementation of Plan
Review and Appraisal of Performance
Pros and Cons
Advantages of MBO
• Develops result-oriented Philosophy
• Raises Employee’s morale• Acts as a motivational
Source• Facilitates Effective Planning• Improves the Quality of
Management
Limitations of MBO
• Time Consuming• Reward Punishment
Approach• Creates Organizational
Problems• Develops Conflicting
Objectives• New opportunities might
lose.
How to make MBO effective
How to make MBO effective
• Support from all• Acceptance of MBO by
managers and subordinates• Training for managers• Organizational Commitments • Allocation of adequate time
and resources• Proper communication
channel• Realistic Goals
MBO in Corporate• Xerox• Hewlett Packard (HP)• DuPont• GL India• Intel
Any Question? You are free to ask.
For more information, please go to:
http://kalyan-city.blogspot.com/2010/06/management-by-objectives-mbo-peter.html
http://www.brainyquote.com/quotes/authors/p/peter_drucker.html
Thank You
What is not measured cannot be managed.