MANAGEMENT BY
OBJECTIVES
(MBO)
PRESENTED BY:
SAHIL RANA
ROLLNO:
3066

INTRODUCTION
• Mbo was introduced by Peter Druker in 1954.
• MBO is a management practice which aims to increase
organizational performance by aligning goals and subordinate
objectives throughout the organization.
• MBO involves focusing more on results rather than the activities
involved

FEATURES OF
MBO
• For the business to succeed, the managers and employees
must work towards a common goal
• . Managers must identify and agree targets for achievement
with subordinates
• Managers must negotiate the support needed to achieve the
targets with subordinates
• Evaluate the objectives over time

OBJECTIVES OF
MBO
• To measure and judge performance.
• To relate individual performance to organizational goals.
• To faster the increasing competence & growth.
• To enhance communication between superior & subordinates.
• To stimulate the subordinates motivation

PROCESS OF MBO

BASIC PRINCIPLES OF MBO
• Unity of management action is more likely to occur when there
is pursuit of a common objective.
• The greater the focus on results on a time scale, the greater
likelihood of achieving them.
• The greater the participation in setting meaningful work with
accountable results, the greater the motivation for completing
it.e

ADVANTAGES OF MBO
• Maximum utilisation of human resources.
• Improved communication.
• Improved organizational structure.
• Carrer development of the employees.
• Result based performance evaluation.
• Stimulating the motivation of employees.

LIMITATIONS OF MBO
• Lack of support from top management.
• Difficulties in qualifying the goals and objectives.
• Costly and time consuming.
• Lack of Adequate skill and trainning.
• Poor integration.

WAYS TO IMPROVE
• Clear goal setting.
• Participating in goal setting.
• Overall philosophy of management.
• Decentralisation of authority.