steps in mbo
TRANSCRIPT
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.