A Presentation On

Management By Objectives

From:
Gaurav Drall
Roll No. 05
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 PLANNING
HOW TO BEST MEET YOUR MISSION

We must plan for the future, because

people who stay in the present will
remain in the past.
Abraham Lincoln
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 What Is Planning
 Planning is a search problem that requires to find
an efficient sequence of actions that transforms a
system from a given starting state to the goal state.
 Planning is the starting point of management
process.
 Predetermines what the business proposes to
accomplish and how it intends realizing its goals.

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 Proper planning accomplishes the following
1. Managing Uncertainty

3. Better Focus

5. Improves Coordination

7. Basis For Control

9. Improves Effectiveness
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 Organizational Mission
 Themission states the organization’s values and
reason for existence.

 The mission statement is the basis for all

following goals and plans.

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 Goals And Plans
Goals: Specify future ends.

Plans: Specify the means to future ends.

“ The blueprint for goal achievement….
Specifies the resource allocation,
Schedules, tasks….”
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 Strategic Goals And Plans
 Strategic Goals pertain
to the entire
organization.

 Strategic Plans define

the action steps the
company will use to
attain strategic goals.

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 Tactical Goals And Plans
 Tactical Goals apply to
middle management and
describe what major subunits
must do to enable the
organization to meet its
strategic goals.

 Tactical Plans:
 Help execute major Strategic
Plans.
 Cover a shorter period of
time.
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 Operational Goals And plans
 Operational Goals: The
specific results expected of
small units, workgroups and
individuals.
 Operational Plans: developed
at the lower levels of an
organization to specify
actions required to achieve
operational goals and to
support tactical plans.

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 Goal Characteristics
 Be specific and measurable in quantitative terms.

 Be for a defined period of time.

 Contribute most to company performance.

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 Types Of Plans
 Single-use plans: These
are developed to achieve
objectives that are not
likely to be repeated in
the future. Single-use
plans include programs,
budgets and projects.

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 Standing Plan
Standing plans are
used to provide
guidance for tasks
performed repeatedly
within the
organization.

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 The Planning Process
GOAL SET TIN G
Identification and formulation of
objective

Revision
Of DEVELOP ING P LANS
Goals Choices between alternative plans
And
Plans

IMPLEM ENT AT ION

Execution of the plan
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 Successful Planning Process

 Everyone Participates
 Board and staff educated about planning
 Board and staff explore new ideas
 Necessary resources available

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Management By
Objectives

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 What Is An Objective?

“ Objectives are goals, aims or purposes that

organization wish over varying time periods.”

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Management By Objectives (MBO)

A method whereby managers and

employees define objectives for every
department, project and person and use
them to monitor subsequent performance.

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 Essential Steps For MBO
Set Goals Develop Action Plan
-The most difficult step. -Course of action for both
workgroup and individual.
-Specific target and time frame.

Review Progress
-Periodic during the year.
-Take corrective action.
Appraise Overall Performance
-How are we doing?
-Do we need to restate our goals? Gaurav Drall 19
 Making MBO Process Effective
 It must start at the top of the organization.

 Employees must be educated about what MBO

is.

 Managers tell their subordinates what

organizational goals and plans top management
has established.
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 Goalsshould be achievable within a specified
period of time.

 The management should specify the resources

that the subordinate will need.

 The employee should be rewarded on goal

attainment.

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