Management By Objectives Pdf

1. Introduction

“Management by Objectives” (MBO) as a philosophy of management was first introduced by Peter F. Drucker in his book “The Practice of Management” in 1954. The philosophy of management by objectives comprises three building blocks: formulation of objectives, process of execution, and mechanism of performance measurement and feedback. MBO is a process in which members of complex organizations, working in conjunction with one another, identify common goals and coordinate their efforts toward achieving them.

Management by objectives, however, was not adopted in its entirety in the first place but conducted in part, especially the very aspect of performance appraisal, even though it has been popularized and broadly practiced both

Personal Development Objectives

Personal development objective plays an important part in defining MBO. It will be the part of MBO when there is a need for them. They will possess little value, if they are included to meet formal requirement even if the situation is not a problem based. Only if organization wishes to invest in education, the personal improvement goal will probably be general and ambiguous. Personal development objectives will outbreak deficiencies related to performance, containing specific action proposals for solving the problems other than philosophical or value-based justification.

The parties who are involved in goal setting should be continuously alert to negative incidents occurring due to personal incapacities. The boss will be in an important and particular position to recognize the problem, and when there arise a situation, according to him, that was due to either personal or technical limitations, and he should make some determination about the cause and who all are involved in that problem. In effect and frequency, this type of negative incidents should be relatively significant and some notice to be taken since they are not simply a single event. This doesn’t mean that for an important one time occurred incident should be over looked if it suggests serious insufficiencies. The key areas in which Personal Development Objectives should set

The deficiencies of MBO practiced in one to one scenario can be rectified if it will focus on cooperative team work and group problem solving. The qualities of traditional MBO and Organizational Development is put together to form CMBO. There is proper timing and situations to introduce Collaborative MBO. It can only implemented when its application and usefulness suits the situation. The process of CMBO is time consuming.

There are many studies which chows the merits of Collaborative MBO approach. CMBO is the kind in which the team emphasis is on truly collaborative, and exists in a climate of mutual support and help. We feel as we described CMBO is consistent, with a participative, team leadership style which avoids many dysfunctional offshoots of dominant MBO practices. We can’t think of that, CMBO will work in all organizations under any environments. It is important to take care and ensure before the implementation of CMBO, that suitable conditions are present and there must be necessary skills emerge during the