MANAGEMENT BY MANAGEMENT BY OBJECTIVESOBJECTIVES

- MBO- MBO

STEPS IN PLANNINGSTEPS IN PLANNINGBEING AWARE OF OPPORTUNITIES

OBJECTIVES OR GOALS

PLANNING PREMISES

IDENTIFYALTERNATIVES

NUMBERIZE PLANS BYMAKING

BUDGETS

FORMULATE SUPPORTINGPLANS

CHOOSE AN ALTERNATIVE

COMPARE ALTERNATIVESIN LIGHT OF GOALS

SOUGHT

THE NATURE OF OBJECTIVESTHE NATURE OF OBJECTIVES

OBJECTIVES FORM A OBJECTIVES FORM A HIERARCHYHIERARCHY PROCESS OF SETTING OBJECTIVESPROCESS OF SETTING OBJECTIVES OBJECTIVES FORM A NETWORKOBJECTIVES FORM A NETWORK MULTIPLICITY OF OBJECTIVESMULTIPLICITY OF OBJECTIVES

GO TOGO TO

HIERARCHY OF OBJECTIVESHIERARCHY 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. Individualobj

DEFINITION:DEFINITION:

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

MBO--MBO--

HOW MBO EVOLVED..HOW MBO EVOLVED..

THE SYSTEMS THE SYSTEMS

APPROACH TO MBO APPROACH TO MBO

SYSTEMS APPROACHSYSTEMS APPROACH

PRELIMINARY PRELIMINARY SETTINGSETTING OF OBJECTIVES AT OF OBJECTIVES AT THE TOPTHE TOP

CLARIFICATION OF ORGANISATIONAL CLARIFICATION OF ORGANISATIONAL ROLESROLES

SETTING OF SUBORDINATE OBJECTIVESSETTING OF SUBORDINATE OBJECTIVES RECYCLING OBJECTIVESRECYCLING OBJECTIVES

GOTOGOTO

PRELIMINARY SETTING OF PRELIMINARY SETTING OF OBJECTIVESOBJECTIVES

FIRST STEP IN MBOFIRST STEP IN MBODEFINE PURPOSE AND TIME PERIODDEFINE PURPOSE AND TIME PERIODCOMPANY’S SWOT ANALYSISCOMPANY’S SWOT ANALYSISESTABLISH MEASURES THAT WILL ESTABLISH MEASURES THAT WILL

INDICATE GOAL ACCOMPLISHMENTINDICATE GOAL ACCOMPLISHMENT

BACKBACK

CLARIFICATION OF CLARIFICATION OF ORGANISATIONAL ROLESORGANISATIONAL ROLES

ACCOUNTABILITY ACCOUNTABILITY IN ACHIEVING IN ACHIEVING GOALSGOALS

BACKBACK

SETTING SUBORDINATE SETTING SUBORDINATE OBJECTIVESOBJECTIVES

INFORM SUBORDINATESINFORM SUBORDINATES SET UP GOALS WITH SUBORDINATESSET UP GOALS WITH SUBORDINATES SUPERIOR’S ROLE VERY IMPORTANTSUPERIOR’S ROLE VERY IMPORTANT SUPERIOR’S MUST BE PATIENT SUPERIOR’S MUST BE PATIENT

COUNSELLORSCOUNSELLORS SUPERIOR’S JUDGEMENT AND FINAL SUPERIOR’S JUDGEMENT AND FINAL

APPROVAL IMPORTANTAPPROVAL IMPORTANT MUST BE CONSISTENT WITH OTHER GOALS MUST BE CONSISTENT WITH OTHER GOALS

TOO.TOO.

BACKBACK

RECYCLING OBJECTIVESRECYCLING OBJECTIVES

OBJECTIVE SETTING IS A JOINT OBJECTIVE SETTING IS A JOINT PROCESS AND INTERACTION.PROCESS AND INTERACTION.

SOME SUBORDINATE GOALS MAY SOME SUBORDINATE GOALS MAY COME INTO FOCUSCOME INTO FOCUS

SOME GOALS COULD BE IRRELEVANTSOME GOALS COULD BE IRRELEVANT

BACKBACK

HOW TO SET UP OBJECTIVES IN HOW TO SET UP OBJECTIVES IN DIFFERENT ENVIRONMENTS?DIFFERENT ENVIRONMENTS?

QUANTITATIVE AND QUALITATIVE QUANTITATIVE AND QUALITATIVE OBJECTIVESOBJECTIVES

OBJECTIVES FOR STAFF POSITIONSOBJECTIVES FOR STAFF POSITIONSGUIDELINES GUIDELINES

GUIDELINESGUIDELINES DO THE OBJECTIVES COVER THE MAIN DO THE OBJECTIVES COVER THE MAIN

FEATURES OF MY JOB?FEATURES OF MY JOB? IS THE LIST OF OBJECTIVES TOO LONG? IF IS THE LIST OF OBJECTIVES TOO LONG? IF

SO, CAN I COMBINE SOME?SO, CAN I COMBINE SOME? ARE THE OBJECTIVES VERIFIABLE? DO THE ARE THE OBJECTIVES VERIFIABLE? DO THE

OBJECTIVES INDICATE QUANTITY, QUALITY, OBJECTIVES INDICATE QUANTITY, QUALITY, TIME, COSTS ETC?TIME, COSTS ETC?

ARE PRIORITIES ASSIGNED?ARE PRIORITIES ASSIGNED? ARE SHORT TERM OBJ CONSISTENT WITH ARE SHORT TERM OBJ CONSISTENT WITH

THE LONG TERM ONES?THE LONG TERM ONES? ARE MY RESOURCES AND AUTHORITY ARE MY RESOURCES AND AUTHORITY

SUFFICIENT FOR ACHIEVING THE SUFFICIENT FOR ACHIEVING THE OBJECTIVES?OBJECTIVES?

NON VERIFIABLE OBJECTIVESNON VERIFIABLE OBJECTIVES

TO MAKE REASONABLE PROFITTO MAKE REASONABLE PROFITTO IMPROVE COMMUNICATIONTO IMPROVE COMMUNICATIONTO IMPROVE PRODUCTIVITYTO IMPROVE PRODUCTIVITYTO DEVELOP BETTER MANAGERSTO DEVELOP BETTER MANAGERSTO INSTALL A NEW COMPUTER TO INSTALL A NEW COMPUTER

SYSTEMSYSTEM

VERIFIABLE OBJECTIVESVERIFIABLE OBJECTIVES

TO ACHIEVE A RETURN OF INVESTMENT OF TO ACHIEVE A RETURN OF INVESTMENT OF 15% AT THE END OF THE CURRENT FISCAL 15% AT THE END OF THE CURRENT FISCAL YEARYEAR

TO ISSUE A TWO PAGE MONTHLY TO ISSUE A TWO PAGE MONTHLY NEWSLETTER BEGINNING ON 1/08/05 NEWSLETTER BEGINNING ON 1/08/05 INVOLVING NOT MORE THAN 20 WORKING INVOLVING NOT MORE THAN 20 WORKING HOURSHOURS

TO DESIGN & CONDUCT AN MDP FOR 40 TO DESIGN & CONDUCT AN MDP FOR 40 HOURS FOR INHOUSE MANAGERS TO BE HOURS FOR INHOUSE MANAGERS TO BE COMPLETED BY 31/12/2006. ATLEAST 90% COMPLETED BY 31/12/2006. ATLEAST 90% OF THE MANAGERS SHOULS PASS THE OF THE MANAGERS SHOULS PASS THE EXAMINATION HELD.EXAMINATION HELD.

BENEFITS OF MBOBENEFITS OF MBO

BETTER MANAGINGBETTER MANAGINGCLARIFIES ORGANISATIONCLARIFIES ORGANISATIONPERSONAL COMMITMENTPERSONAL COMMITMENTDEVELOPMENT OF EFFECTIVE DEVELOPMENT OF EFFECTIVE

CONTROLSCONTROLS

WEAKNESSES OF MBOWEAKNESSES OF MBO

FAILURE TO TEACH THE PHILOSOPHY FAILURE TO TEACH THE PHILOSOPHY OF MBOOF MBO

FAILURE TO GIVE GUIDELINES TO FAILURE TO GIVE GUIDELINES TO GOAL SETTERSGOAL SETTERS

DIFFICULTY OF SETTING GOALSDIFFICULTY OF SETTING GOALSSHORT TERM NATURE OF GOALSSHORT TERM NATURE OF GOALSDANGERS OF INFLEXIBILITYDANGERS OF INFLEXIBILITY

THE END .THE END .