A presentation on MBO. MBO is an approach to management developed by Peter F Drucker.

1. Management By Objectives
Management By Results
Presentation by Neeraj Pant
Never tell people how to do things. Tell them what
to do and they will surprise you with their ingenuity.
George S. Patton

2. Most of us what we call
management consists of making
it difficult for people to get their
work.
Peter Drucker

3. Concept of MBO
• Developed by Peter Drucker
• Most widely accepted Philosophy of
Management
• Democratic style of Management
• Better than Classical Theory of Management
By Control. (MBC)

4. Concept of MBO
• Superiors and Sub-ordinates managers jointly
define common goals
• Together decide about their areas of
responsibility and expected results.
• They use these measures as guides for operating
the unit and assessing the contribution
of each of its member.

5. Steps in MBO Process
Goal
Setting
Manager-
Subordinate
Involvement
Match Goals
and Resources
Implementation
of Plan
Review and
Appraisal of
Performance

6. Pros and Cons

7. Advantages of MBO
• Develops result-oriented Philosophy
• Raises Employee’s morale
• Acts as a motivational Source
• Facilitates Effective Planning
• Improves the Quality of Management

8. Limitations of MBO
• Time Consuming
• Reward Punishment Approach
• Creates Organizational Problems
• Develops Conflicting Objectives
• New opportunities might lose.

9. How to make MBO effective

10. How to make MBO effective
• Support from all
• Acceptance of MBO by managers and
subordinates
• Training for managers
• Organizational Commitments
• Allocation of adequate time and resources
• Proper communication channel
• Realistic Goals

11. MBO in Corporate
• Xerox
• Hewlett Packard (HP)
• DuPont
• GL India
• Intel

12. Any Question? You are free to ask.

13. For more information, please go to:
http://kalyan-city.
blogspot.com/2010/06/management-by-objectives-
mbo-peter.html
http://www.brainyquote.com/quotes/authors/p/p
eter_drucker.html

14. Thank You
What is not measured cannot
be managed.