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Management by Objective: MBO by Srinjay Bajpayee

MBO or Management by Objectives is a process where managers and employees agree on goals, then performance is judged based on achieving those goals. Setting specific and challenging goals leads to increased output and effort compared to not setting goals. For MBO to be effective, goals must be mutually agreed upon, achievable but stretching, within an employee's control, and regularly reviewed. They also need to be clearly defined, simple to understand, and written down. However, MBO programs can sometimes attribute too much credit or blame to employees.

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Srinjay Bajpayee
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445 views9 pages

Management by Objective: MBO by Srinjay Bajpayee

MBO or Management by Objectives is a process where managers and employees agree on goals, then performance is judged based on achieving those goals. Setting specific and challenging goals leads to increased output and effort compared to not setting goals. For MBO to be effective, goals must be mutually agreed upon, achievable but stretching, within an employee's control, and regularly reviewed. They also need to be clearly defined, simple to understand, and written down. However, MBO programs can sometimes attribute too much credit or blame to employees.

Uploaded by

Srinjay Bajpayee
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Management by objective

MBO
By srinjay bajpayee
Goal-Setting Theory
 Many believe that everyone already sets
goals
 But this is not true
 When groups do set goals, output
invariably increases over groups that do
not set goals.
Goal setting and incentives
 Incentives improve performance – but
 Only if they cause individuals to set and
commit to attaining specific goals
Why does goal setting effect
performance?
 Goals focus activity
 Goals regulate expenditure of effort
 Difficult goals lead to more persistent
effort than do easy goals
 These 3 are critical to the MBO process
What is MBO?
 We set goals and then performance is
judged based on how well we
accomplish these goals.
 Intellectually – this seems like the way
to go – and has for years
 But?
The goals must be:
 Mutually agreeable to employee and
supervisor
 Demanding (stretching) but achievable
 Within the control of the employee
 Reviewed periodically for modifications
based on events
The goals must also be:
 Clearly defined
 Simple to understand
 Written
Problems with MBO programs
 Employees get systematically more
credit or blame than deserved
 Bias still exist in rating.

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