steps in mbo

8/22/2019 steps in MBO

1/10

STEPS IN MANAGING BY

OBJECTIVES

Setting of organizational objectives

Formulation of departmental objectives

Establishing goals or targets of subordinates

Establishing check-points or key result areas

Followup and periodic review of progress

Appraisal of performance and counseling


2/10

1. SETTING OF ORGANIZATIONAL

OBJECTIVES

This is the first step in MBO to establish

verifiable objectives for the organization as a

whole.

To set the objectives a detailed assessment

has to be made of the various resources.

Proper forecasts should be made to estimate

the demand and the business conditions in

the country.


3/10

2.FORMULATION OF DEPARTMENTAL

OBJECTIVES

Top management must determine the

objectives of every department.

Top management should discuss the

objectives with the departmental managers,

so that statement of agreed objectives may

be evolved.


4/10

3. ESTABLISHING GOALS OR TARGETS OF

SUBORDINATES

Each subordinates sets the goals of his job

and discusses the same with the superior.

Once the process is complete, there will exist

a meeting of minds of each superior and his

subordinates as to what is to be

accomplished and why is it to be

accomplished.


5/10

4. ESTABLISHING CHECK-POINTS OR KEY

RESULT AREAS

MBO calls for periodic meetings between the

superiors and the subordinates to review the

progress towards the accomplishment of

targets of the subordinate.

Superiors must establish check points for

evaluating the progress of the subordinate.


6/10

5. FOLLOWUP AND PERIODIC REVIEW OF

PROGRESS

The superior must make a periodic review of

the progress in achieving the subordinates

targets.

He should call meetings to identify the

problems faced by the subordinates and

taking appropriate steps.


7/10

6. APPRAISAL OF PERFORMANCE AND

COUNSELING

It can be of formal or informal appraisal.

The performance of every individual isevaluated in terms of the standards or end-

results clearly agreed upon by the superiorand the subordinate.

The superior will discuss with the

subordinate the ways to remove deficienciesin performance and advice him as to how toincrease the efficiency.


8/10

It is difficult to judge the performance of

individuals where the objectives cannot be

set in quantitative terms.

In MBO goals are set only for a short

period of time.


9/10

It requires far reaching changes in

traditional thinking and practices.

Lack of training and knowledge on

the part of the supervisors in implementingthe programme.

Lack of follow-up by the superior

at the appropriate time.


10/10

Since goals are set after every sixmonths the supervisor may not like to modifythem in between because of fear of resistancefrom the subordinates.

MBO is not appropriate for all levels andfor everyone . it is suitable only whereboth managers and subordinates feel

comfortable with it.

It is costly and time consuming.

steps in mbo

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