Management By Objectives :: Business Management Studies

Management By ObjectivesMBO Principles* Cascading of organizational goals and objectives.* Specific objectives for each member.* Participative decision making.* Explicit time period.* Performance evaluation and feedback.Types of objectives* Routine objectives.* Innovation objectives.* overture objectives.The objective must beo Focused on a result, not an activity.o Consistent.o Specific.o Measurable.o Related to time.o Attainable.MBO dodge has three basic parts1. All individuals within an organization are assigned a special set of objectives that they try to reach during a customary operating period. These objectives are mutually set and agreed upon by individuals and their managers.2. Performance reviews are conducted periodically to determine how close individuals are to attaining their objectives.3. Rewards are given to individuals on the basis of how close they come to reaching their goals.MBO has six stages1. Define corporate objectives at broad level.2. Analyze mana gement tasks and devise formal job specifications, which allot responsibilities and decisions to individual managers.3. Set mathematical process standards.4. Agree and set specific objectives.5. Align individual targets with corporate objectives.6. Establish a management information system to admonisher achievements against objectives.The 8 key result areas where managers must pursue clear objectivesare Marketing. Innovation. Human organization. Financial resources. Physical resources. Productivity. Social responsibility. Profit requirement.MBO Key Advantages and DisadvantagesAdvantageso MBO programs continually emphasize what should be done in an organization to achieve organizational goals.o MBO process secures employee commitment to attaining organizational goals.Disadvantageso The development of objectives can be time consuming, leaving both managers and employees less time in which to do their actual work.o The elaborate written goals, careful communication of goals , and detailed performance evaluation required in an MBO program increase the volume of paperwork in an organization.Managing for Results The Eight Perceptions Resources and results exist outside, not inside, the business.