2. Meaning Of MBO
“ Management by objectives is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed toward the effective and efficient achievement of organisational and individual objectives”

3. Characteristics:
Measurable & time bound objectives for each managerial position
Objectives for each position are established by job-holders & the boss together
These objectives form basis for performance evaluation
Sharp definition of responsibilities & authorities for positions, provides clarity in the organisation

4. Features of MBO :
MBO is not merely a technique but a philosophy to management
Objectives of organisation & of individuals are collectively decided by superiors and subordinates
The Corporate , Departmental and Individual objectives are used as a yardstick to measure performance

5. MBO provides for a regular review of performance
MBO provides for a regular review of performance. The review is future oriented & provides a basis for planning & corrective actions
The objectives in MBO provide guidelines for appropriate system & procedures. These objectives also become a basis of reward & punishment in the organisation

6. Objectives: Measuring performance Increasing Growth of Subordinates
Encouraging Efficiency
Relating Individual Performance to Organisational Goals
Basis For Deciding Salary and Promotion
Improving Communication among Superiors and Subordinates
Device of Organisational Control

8. Process of MBO Setting objectives at the Top
Clarifying Organisational Roles
Setting Subordinates Objectives
Recycling Objectives

9. Benefits of MBO Better Managing Clarifying Organisation
Encouraging Personal Commitment
Developing Controls

11. Weakness of MBO Failure to Teach MBO Philosophy
Failure to give guidelines to goal setters
Difficulty in setting goals
Emphasis on short term objectives
Danger of inflexibility

12. Pre-requisites for installing MBO Programme
Defining purpose
Support from top management
Training for MBO Programme
Participation
Feedback

13. Management by Exception
It means that management should not concentrate on things of minor nature rather it should involve where there are exceptions .

15. Difference Between Management by Objectives & Management by Exception

16. MBO MBE BASIS Philosophy of decentralisation Wider
Nature:
Concept
Functions:
Time Required:
MBO
Philosophy of decentralisation
Wider
Helps in setting their goals
Needs more time
MBE
Control technique
Narrow
Report exceptions to the top executives
Comparatively less time is required

17. THANK YOU