3. MANAGEMENT BY
OBJECTIVES
“The system of management by objectives can be
described as a process whereby the superior and
subordinate managers of an organization jointly
identify its common goals, define each individual’s
major areas of responsibility in terms of results
expected of him and use these measures as
guides for operating the unit and assessing the
contribution of each of its members.”
- George S. Ordiorne
4. ELEMENTS IN THE MBO
PROCESS
Setting
Overall
Central
Goals
Setting
Individual
Goals
Periodic
Performance
Appraisal &
Feedback
Final
Appraisal
5. o Central Goal Setting
o Departmental and Individual Goal Setting
o Revision of Job Descriptions
o Matching Goals and Resource Allocation
o Freedom of Implementation
o Establishing Check Points
o Appraisal of Performance
o Counseling
6. ADVANTAGES OF MBO
Improved Performance
Greater Sense of Identification
Maximum Utilization of Human Resources
No Role Ambiguity
Improved Communication
Improved Organizational Structure
Device of Organizational Control
Career Development of the Employees
Result Based Performance Evaluation
Stimulating the Motivation of Employees
7. LIMITATIONS OF MBO
Lack of Support of Top Management
Resentful Attitude of Subordinates
Difficulties in Quantifying the Goals and Objectives
Costly and Time Consuming Process
Emphasis on Short-term Goals
Lack of Adequate Skills and Training
Poor Integration
Lack of Follow-up
Difficulty in Achieving Group Goals
Inflexibility
Limited Application
Long Gestation Period
8. SUGGESTIONS FOR
EFFECTIVE IMPLEMENTATION
OF MBO
Top Management Support and Commitment
Clear Goal Setting
Participative Goal Setting
Overall Philosophy of Management
Decentralization of Authority
Revision and Modification of Goals
Orientation and Training of Executives
Integration of MBO Programme
9. JOB SATISFACTION
“Job Satisfaction is the amount of pleasure or
contentment associated with a job. If you
like your job intensely, you will experience
high job satisfaction. If you dislike your job,
you will experience job dissatisfaction.”
- Andrew Brin
10. FACTORS INFLUENCING JOB
SATISFACTION
ORGANISATIO
NAL FACTORS
• Salaries &
Wages
• Promotion
Changes
• Company
Policies
WORK
ENVIRONMENTA
L FACTORS
• Supervision
• Work
Group
• Working
Conditions
WORK ITSELF
• Job Scope
• Variety
• Autonomy
and
Freedom
• Role
Ambiguity
and Role
Conflict
• Interesting
Work
PERSONAL
FACTORS
• Age and
Seniority
• Tenure
• Personality
11. CONSEQUENCES OF JOB
SATISFACTION
Job Satisfaction and Productivity
Job Satisfaction and Employee Turnover
Job Satisfaction and Absenteeism
Job Satisfaction and Union Activities
Job Satisfaction and Safety
Other effects of Job Satisfaction
12. THEORIES OF JOB
SATISFACTION
NEED FULFILLMENT THEORY
EQUITY THEORY
TWO FACTOR THEORY
DISCREPANCY THEORY
EQUITY DISCREPANCY THEORY
SOCIAL REFERENCE GROUP THEORY
13. JOB ENRICHMENT
“Job Enrichment is a motivational technique which
emphasizes the need for challenging and
interesting work. It suggests that jobs be
redesigned so that intrinsic satisfaction is derived
from doing the job. In its best applications, it leads
to a vertically enhanced job by adding functions
from other organizational levels, making it contain
more variety and challenge and offer autonomy
and pride to the employee.”
- Beatty and Schneider
14. CHARACTERISTICS OF JOB
ENRICHMENT
1. Direct Feedback
2. Client Relationships
3. New learning
4. Scheduling Own Work
5. Unique Experience
6. Control Over Resources
7. Direct Communication Authority
8. Personal Accountability
15. ADVANTAGES OF JOB ENRICHMENT
o Removes frustrations of employees
o Reduces the rate of employee turnover and
absenteeism
o Motivates the employees
o Task enforcement is made easy and skills of
workers are increased
o Employee satisfaction
o Qualitative and quantitative improvement in output
o Enhances creativity
16. LIMITATIONS OF JOB
ENRICHMENT
Tendency to refuse challenging works
No scope for enrichment in highly skilled
professionals
Technology may not permit enrichment of all the
jobs
Very costly
Employees may not have the caliber though they
prefer to have job enrichment
Decreased productivity
Enrichment become static after some time
It may create negative impact on employees
Workers may resist to top managers’ challenges
17. JOB ENLARGEMENT
“Job Enlargement is the process of allowing individual workers
to determine their own pace (within limits), to serve as their
own inspectors by giving them responsibility for quality
control, to repair their own mistakes, to be responsible for
their own machine set-up and repair, and to attain choice of
method.”
- Hulin and Blood
18. ADVANTAGES OF JOB
ENLARGEMENT
Variety of tasks
Enlarged and meaningful work modules
Optimum utilization of abilities
Worker paced control
Meaningful feedback
19. DISADVANTAGES OF JOB
ENLARGEMENT
Costly affair
Productivity falls in the short run
Due to the increased workload, employee unions
argue for increased pay
Some jobs may tend to be routine and boring even
after enlargement
20. JOB ENLARGEMENT JOB ENRICHMENT
Involves horizontal loading or
expansion of job
Purpose is to reduce
monotony in performing
certain repetitive jobs by
lengthening the cycle of
operations
May not call for the acquisition
of higher level or new skills on
the part of the job holders
Job holder may need more
external direction and control
in view of enlargement of the
scope and responsibilities
Involves vertical loading of
functions & responsibilities of
employees
Purpose is to make the job
more lively, challenging and
satisfying.
Requires the development
and utilization of higher skills,
initiative and innovation on the
part of job holders
Employee uses his own
capabilities and self direction
and control. He needs less of
external direction and control
21. JOB ROTATION
Job Rotation is a management approach where employees are
shifted between two or more assignments or jobs at regular
intervals of time in order to expose them to all verticals of an
organization. It is a pre-planned approach with an objective to
test the employee skills and competencies in order to place
him or her at the right place. In addition to it, it reduces the
monotony of the job and gives them a wider experience and
helps them gain more insights.
22. ADVANTAGES OF JOB
ROTATION
Reduces boredom and monotony through
diversifying the employees activities
Employees with a wider range of skills give
management more flexibility in scheduling work,
adapting to changes and filling vacancies
It broadens the range of experience of employees
and is an effective training technique
23. DRAWBACKS OF JOB
ROTATION
Disruption of work
Increased training costs
May de-motivate intelligent and ambitious trainees
Not everybody possess the technical knowledge
and skills to move from one job to another
No appreciable change in employee satisfaction.
