Management by Objective

1. MANAGEMENT
BY OBJECTIVES
(MBO)

3. WHAT IS MBO?
Management by objectives (MBO) is a
systematic and organized approach that
allows HR to focus on achievable goals and
to attain the best possible results from
available resources.
Management by Objectives (MBO) was first
outlined by Peter Drucker in 1954 in his
book 'The Practice of Management'.
 In the 90s, Peter Drucker himself decreased
the significance of this organization
management method, when he said: "It's
just another tool. It is not the great cure for
management inefficiency.

4. CORE CONCEPTS OF MBO
 According to Drucker we should "avoid the
activity trap", getting so involved in their
day to day activities that they forget their
main purpose or objective.
 participate in the strategic planning process, in
order to improve the implementability of the
plan, and
 implement a range of performance systems,
designed to help the organization stay on the
right track.

5. OBJECTIVE VS ACTIVITY
 MBO focus on the results, not the activity. They delegate tasks
by "negotiating a contract of goals" with their business
partners without dictating a detailed roadmap for
implementation.
 MBO is about setting yourself objectives and then breaking
these down into more specific goals or key results.

6. SETTING OBJECTIVES
"The principle behind this is to ensure that
people know what the organization is trying
to achieve, what their part of the
organization must do to meet those aims,
and how, as individuals, they are expected to
help.
 This presupposes that organization's
programs and methods have been fully
considered.
 If they have not, start by constructing team
objectives and ask team members to share in
the process.“

7. START CAMPAIGN?
You should master on five basic operations :
1. Setting objectives
2. Organizing the group
3. Motivating and communicating
4. Measuring performance, and
5. Developing people, including yourself.

8. ROLE OF EVERY TEAM
MEMBER
 In strategic campaign design you have to ask each yourself
three questions:
 What should you hold yourself accountable for?
 What information do you need?
 What information do you owe the rest of your team?

9. THE FIVE-STEP MBO
PROCESS

10. TYPES OF OBJECTIVES
 Routine objectives
 Innovation objectives
 Improvement objectives
 The objectives must be:
 focused on a result, not an activity
 consistent
 specific
 measurable
 related to time
 attainable

11. SIX MBO STAGES
 Define corporate objectives at board level
 Analyze management tasks and devise formal job
specifications, which allocate responsibilities and
decisions to individual managers
 Set performance standards
 Agree and set specific objectives
 Align individual targets with corporate objectives
 Establish a management information system to
monitor achievements against objectives

12.  Client orientation is defined as an approach to sales
and client-relations in which staff focus on helping customers
to meet their long-term needs and wants. Here, management
and employees align their individual and team objectives
around satisfying and retaining customers.

13.  Background history
 Development
 Key People in the Organization
 The functions of the Organization
 The values Organization Own
 Key Achievements

14. 1. Start at the top
2. Hire people who fit
3. Get everyone involved
4. Trust your team
5. Establish good lines of communication

15.  1. Understand what constitutes a multiple relationship
 2. Protect confidentiality
 3. Respect people's autonomy
 4. Know your supervisory responsibilities
 5. Identify your client and role
 6. Document, document, document
 7. Practice only where you have expertise
 8. Know the difference between abandonment and termination
 9. Stick to the evidence
 10. Be accurate in billing