Management Process & Organizational Behaviour

Management By Objective & Problem Solving

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Puneet Prabhas Anshul Arun

Presentation Contents

Unit 1 Introduction

Unit 2 Features

Unit 3 Practical Utility

Unit 4 Problem Solving

Definition & Concept

Implementation Steps (Process)

Difficulties
Effective

Conclusion

What is MBO ?
It is defining of objectives for each employee and then to compare and to direct their performance against the objectives which have been set. In other words it is a process where by employees and the superiors come together to identify their common goals.

Features of MBO
Outlined by Peter Drucker in 1954. Motivation. Better communication. Harmonious relations. Clarity of Goals. Sense of belongingness.

Core Concepts
Managers should avoid the activity trap. Objective is to involve each and every employee in strategic planning . Make managers implement range of performance systems. Objectives can be set in all domain of activities. MBO managers focus on results not on activities.

Principles of MBO
Cascading of organisnal goals and objectives.

Specific objectives for each employee.

Participative decision making. Explicit time period.

Performance evaluation and provide feedback.

SMART METHOD
S specific M Measurable A Achievable R Realistic

T Time related

Presentation Contents

Unit 1 Introduction

Unit 2 Features

Unit 3 Practical Utility

Unit 4 Problem Solving

Definition & Concept

Implementation Steps (Process)

Difficulties
Effective

Conclusion

MBO Process

Setting the objective

Reviewing Performance

MBO

Planning

Implementation

The process consists of a cycle of four steps:

Setting objectives Planning action Implementing plans Reviewing performance

Setting the objective:

What is an objective? Aim: the goal intended to be attained (and which is believed to be attainable).

Setting the Objective

MBO devices a process by which objectives flow down through the organization. The organizations overall objectives are translated into specific objectives for each succeeding level.

Principle of setting the objective:

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.

The objective must be:

Goal Specific Mutually Agreeable Attainable Time bound Reviewed

Action plan

Action plan:
The action plan states specifically what steps or tasks will be accomplished to achieve the objective.

It includes a schedule with deadlines for significant actions, resources necessary to achieve the objective, and methods to measure the objective.

How Action plan helps?

Helps the manager in staying organized, coordinate his or her team's activities, and complete projects as scheduled.

Preparing action plans addresses potential problem areas, considers impacts of the actions, and ultimately leads to maximization of the chances of success while implementing the plan.

Plan Implementation

Plan implementation:
To control their performance managers must be allowed to implement their plans in their own way.

Including employees, who are directly involved or those who are indirectly affected by that decision, in the implementation of a decision, will help foster their commitment.

Reviewing the performance:

Reviewing the performance:

Managers review the performance of the people they supervise. Helps in identifying the obstacles in achieving the objectives. Evaluate the plans to achieve individual and group goals. Discuss how can these obstacles be removed.

Presentation Contents

Unit 1 Introduction

Unit 2 Features

Unit 3 Practical Utility

Unit 4 Problem Solving

Definition & Concept

Implementation Steps (Process)

Difficulties
Effective

Conclusion

Practical Utility
Better Planning Setting of Goals Active Participation Improves Goal Clarity Planning directed towards objectives Better Organization Change in job descriptions Defining objectives, responsibility & authority. Higher Productivity Concentration of Important Goals.

Better Appraisal Intensifies Accountability.

Fosters Innovation

Difficulties in Implementation
Hesitation to change Different from traditional thinking & practices. Lack of Preparation Poor Planning Involving all levels Imposing Goals Unrealistic goals Unnecessary Paperwork Lengthy Process Neglecting the goals of individuals

Making MBO Effective

Top level Commitment

Training of Managers
Clarity of Purpose Encouraging participation Delegating Authority Overall Integration.

Presentation Contents

Unit 1 Introduction

Unit 2 Features

Unit 3 Practical Utility

Unit 4 Problem Solving

Definition & Concept

Implementation Steps (Process)

Difficulties
Effective

Conclusion

Problem Solving
The manager must recognize problems, make a decision, initiate an action, and evaluate the results. A problem exists whenever there is a difference between what actually happens and what the manager wants to have happen. A problem can be referred to as an obstacle on the path towards the goals. Problem solving is the process of taking corrective action in order to meet objectives. It is the process of eliminating the obstacle on the path toward the goal.

Problem Solving, The Steps

Define the problem

Identify objectives

Develop & evaluate alternatives

Choice

Implement the decision

Evaluate the decision.

Conclusion
Clear objectives must be set by each enterprise.

Participation at all levels.

MBO process must be applied systematically. MBO : A system of management and not a set of rules. Goals at each level which can be measured and verified. Translates abstract philosophies into concrete plans. A way to make management effective. Goal clarity, Role clarity, Feedback, Participation & Appraisal.

Thank You.

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