Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
5 views5 pages

PPM Class6Ch

Chapter 6 discusses Management by Objectives (MBO), highlighting its features, elements, and processes. MBO promotes participation in goal-setting, facilitates decision-making, and aligns individual goals with organizational objectives. The chapter also outlines top-down and bottom-up approaches for establishing objectives within an organization.

Uploaded by

Vignesh Mishra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
5 views5 pages

PPM Class6Ch

Chapter 6 discusses Management by Objectives (MBO), highlighting its features, elements, and processes. MBO promotes participation in goal-setting, facilitates decision-making, and aligns individual goals with organizational objectives. The chapter also outlines top-down and bottom-up approaches for establishing objectives within an organization.

Uploaded by

Vignesh Mishra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 5

Chapter 6

Management by Objectives
Features of MBO

Philosophy of
Participation
management

Links
Integration objectives to
performance
Elements of MBO Objectives of MBO
1. Commitment 1. It promotes participation in the goal-setting
2. Top management support process.
2. It facilitates fast and effective decision-
3. Individual goals
making.
4. Participation 3. It coordinates individual goals with
5. Autonomy organisational goals.
6. Review 4. It improves communication amongst
managers and subordinates.
5. It serves as the basis for control by setting
objective standards of performance.
6. It increases organisational efficiency by
specifying priorities and outcomes at each
level.
7. It defines individual responsibilities by
clearly specifying the expectations of all
those who are involved in the MBO process.
Process of MBO
1. Develop overall goals : Overall organisational goals relate to the mission/purpose of the
organisation.
2. Establish specific goals : Specific goals are set for departments, sub-units and individuals in the
organisational hierarchy.
3. Devise action plans : “Action plan is a description of what is to be done, when, where, and by
whom, in order to achieve a goal.”
4. Self-control : MBO helps in maintaining self-control. As people have autonomy to plan their
goals, they ensure that performance is in conformity with the goals.
5. Appraisal of performance : The success of plans is ensured through periodic review of
performance where problems are identified and solutions are sorted out; and if the need arises,
goals are altered for the next MBO cycle.
Approaches to MBO
1. Top-down Approach
➢ Objectives are framed by top executives and communicated to lower levels for their suggestions.
Superiors and subordinates together review the suggestions and arrive at mutually accepted
goals.
2. Bottom-up Approach
➢ Individuals frame the objectives, send them to the superiors for their approval, modification and
acceptance.
➢ After making necessary changes, the superiors send them further up to their superiors for
approval.
➢ The process continues till the top management approves these objectives.

You might also like