TOPICS

Management Functions

Goals and Objectives

Setting Goals Effectively

Management by Objectives(MBO)

Group Members:

I. Engr.Syed Wasif Azim Rizvi

II. Engr.Muhammad Bilal

III. Engr.Mustanser Hussain

Prophet Muhammad (Peace Be Upon Him) said:

“Each of you is a shepherd, and all of you are

responsible for your flocks.” (Saheeh Al-Bukhari,

Saheeh Muslim)

Management

Management refers to the tasks and activities involved

in directing an organization or one of its units: planning,

organizing, leading, and controlling.

The process of reaching organizational goals by

working with and through people and other

organizational resources.

Basic Managerial Functions

Organizing

Planning

Controlling

Leading

Planning

Planning involves tasks that must be

performed to attain organizational

goals, outlining how the tasks must be

performed, and indicating when they

should be performed.

Organizing

Process of deciding where decisions will be made, who will

perform what jobs and tasks, and who will report to whom in

the company

Includes creating departments and job descriptions

Finance Manager HR Manager Production Manager

CEO

Leading

Getting others to perform the necessary tasks by

motivating them to achieve the organization’s goals.

Objective is to improve productivity

Crucial element in all functions.

Controlling

Process by which a person, group, or organization

consciously monitors performance and takes

corrective action.

Goals & Objectives

Goals and objectives are a critical component of

management.

Tell you if you and the organization are on the right track.

Goals

Provide the foundation for measurement.

Define what an organization is trying to accomplish.

A collection of related programs.

A reflection of major actions of the organization.

Objectives

Very precise, time-based and measurable actions that

support the completion of a goal.

Must be related directly to the goal

Be clear, concise, and understandable

Stated in terms of results.

Specify a date for accomplishment

Be measurable.

“Leadership is working with goals; management is

working with objectives.” Russel Honore

Goals and Objectives in P-O-L-C

Goals and objectives are an essential part of planning.

Also have cascading implications for all the aspects of

organizing, leading, and controlling.

Goals, Objectives, and Planning

Planning typically starts with a vision and a mission.

Then managers develop a strategy for realizing the

vision and mission

Achieving vision and mission will be indicated by how

well the underlying goals and objectives are achieved.

Goals, Objectives, and Organizing,

Leading, and Controlling

Obviously, the role of goals and objectives does not stop

in the planning stage.

If goals and objectives are to be achieved and actually

improve the competitive position of the firm, then the

organizing, leading, and controlling stages must address

goals and objectives as well.

Continue…

The way that the firm is organized can affect

goals and objectives in a number of ways.

In terms of leadership, it is usually top managers

who set goals and objectives for the entire organization.

Finally, goals and objectives can provide a form of

control,

regarding how well or how poorly the organization

executes its strategy.

P-O-L-C Framework

In terms of planning-organizing-leading-controlling (P-O-L-C)

framework.

Management Goals

Employee Motivation

Customer Satisfaction

Increased Profit

Setting Goals Effectively

The process of setting goals effectively should be a collaborative process

between an employee and his manager.

Whether writing long- or short-term goals, the most widely-used framework is

S-M-A-R-T.

S-M-A-R-T

Specific: Well-defined to inform employees exactly what is expected, when,

and how much.

Measurable: means you are able to determine or figure out that you have hit

your target.

Attainable: means it's not just a dream, but your goal is within reach.

Realistic: means it's possible to do the task within a fixed amount of time.

Time-bound: Establish enough time to achieve the goal, but not too much

time to undermine performance.

MANAGEMENT

BY

OBJECTIVES

Definition:

Management By Objectives (MBO) can be defined as a

process whereby the employees and the superiors come

together to identify common goals, the employees set their

goals to be achieved, the standards to be taken as the

criteria for measurement of their performance and

contribution and deciding the course of action to be

followed.

Concept of MBO

Developed by Peter Drucker

Most widely accepted Philosophy of Management

Democratic style of Management

Better than Classical Theory of Management

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 operating

the unit and assessing the contribution

of each of its member.

MBO Process:

Define Organizational

Goals

Define Employee Objectives

Continuous Monitoring of

Employee Performance and

Progress

Evaluate Performance

Reward Employee

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.