2. Definition MBO is a comprehensive managerial system that integrates many key management activities in a systematic manner , directed towards the effective and efficient achievement of organizational objectives MBO is a result centered managerial process for the effective utilization of material , physical and human resources of the organization by integrating the individual with the organization and organization with the environment Er.Sartaj Singh Bajwa
3. Features Of MBO MBO focuses sharply on the objectives which a manager is expected to achieve within a specified period Also it emphasis on participative management , an approach which provides motivation to individuals in an organization MBO tries to match objectives and resources MBO is characterized by the participation of managers in objective decision setting and performance reviews Er.Sartaj Singh Bajwa
4. Process Of MBO Setting of organizational purpose and objectives(why does the organization exist , what should be our business) Concentration on Key result areas(KRA) i.e on market standing , innovation , productivity , worker performance Setting Subordinate`s Objectives (recommendations by the superior for the subordinates objectives ) Matching Resources with Objectives ( available resources are matched at the time when objectives are framed ) Appraisal ( to measure whether the subordinate is achieving his objective or not ) Recycling ( outcome of appraisal at one level is recycled to see if the objectives have been set properly ) Er.Sartaj Singh Bajwa
5. Benefits of MBO Better managing Clarity in organizational action Personnel satisfaction Basis for organizational change Er.Sartaj Singh Bajwa
6. Limitations Of MBO Time & Cost Failure to teach MBO policy Problem in objective setting ( setting of verified objectives against which performance can be measured) Emphasis on short term objectives Inflexibility ( since objectives cannot be changed ) Frustration ( because of non fulfillment of objectives ) Er.Sartaj Singh Bajwa
