Management by objectives/MBO

Management by objectives/MBO

This model of goal setting was first offers by Peter Drucker in his book ,The Practice of Management,that time this is only used to set up management goals but now MBO is not only used for setting goals but also used as other techniques like planning , directing, motivation,performance appraisal and control technique.MBO goes beyond setting organisational goals ,it setting organisational goals ,departmental goals& employees goals.
       MBO refers to formal procedures that begin with setting organisational objectives, department objectives and employee objectives and continues till performance review.In MBO Managers and superior jointly set the objectives for organisation and then responsibility is also assign to everyone and performance is review periodically less than one year ,months ,quarter.Each person area of responsibility is defined according to objectives and then performance is measure . Performance is measures periodically..
"MBO is a process where superior and subordinate jointly determine their goals (target)which they want to achieve within a year or less than one year(month, quarter or year). "Responsibility is also assign to everyone and authority also given to perform duty at the end of period both manager and subordinate meet again and jointly review their performance.There is direct participation of employees in goals determination.

Company&his employees

          

 Objectives of MBO..

🖋️To set organisation goals and individual goals.

🖋️Active participation of employees.

🖋️ Employees clear about their responsibility.

🖋️Provide base for comparison.

🖋️ Individual performance measurable.

🖋️To Motivate employees.

🖋️ Maintain co.ordination.

🖋️Enhance communication.

🖋️ Performance Appraisal possible.