MANAGEMENT BY OBJECTIVE
  (MBO)
   
    TO MANAGE AN ORGAISATION EFFECTIVELY 
    FORMULATION OF CLEAR OBJECTIVES ARE REQUIRED.
   
    OBECTIVES ARE GUIDELINES OR ROADMAPS FOR 
    MANAGERIAL EFFORT AND ACTIONS.
   
    AN OBJECTIVE IS A GOAL, AN END THAT AN 
    ORGANISATION OR AN INDIVIDUAL AIMS AT OR 
    STRIVES TO ATTAIN.
   
    OBJECTIVES DETERMINE WHAT AN INDIVIDUAL AND 
    THE WHOLE ORGANISATION ARE EXPECTED TO 
    ACCOMPLISH.
   
    OBJECTIVES ARE THE FOUNDATION OF GOOD 
    PLANNING.
  OBJECTIVES SHOULD BE “SMART”
   
    S = SPECIFIC (TARGET)
   
    M = MEASURABLE (QUANTIFY)
      “What gets measured gets done”
   
    A = ATTAINABLE OR ASSIGNABLE
   
    R = RELEVANT OR REALISTIC
   
    T = TIME BOUND
   “OBJECTIVES SHOULD BE ACCEPTED BY 
    BOTH THE SUPERIOR AND THE SUB-
    ORDINATES”
  HIERARCHY OF OBJECTIVES
  
   TLM : MISSION, OVERALL OBJECTIVES OF 
   AN ORGANISATION, PRODUCTIVITY, 
   PHYSICAL AND FINANCIAL RESOURCES, 
   PROFITABILITY, MARKET SHARE, 
   INNOVATION, SOCIAL RESPONSIBILITY, 
   QUALITY AND SERVICE ISSUES.
  
   MLM : DIVISIONAL AND DEPARTMENTAL 
   OBJECTIVES.
  
   LLM : PERFORMANCE GOALS, UNIT 
   OBJECTIVES.
  MBO
  
   MBO IS AN APPRAISAL TOOL.
  
   MBO IS A PLANNING AND CONTROL DEVICE.
        THE  PROCESS  OF  MBO  BEGINS  WITH 
   SETTING  OF  SUBORDINATES  OBJECTIVES 
   JOINTLY BY THE IMMEDIATE SUPERIOR AND 
   SUB-ORDINATES  AND  ENDS  WITH  THE 
   PERFORMANCE  APPRAISAL  OF  THE  SUB-
   ORDINATES.  THE  MANAGER  ALONG  WITH 
   HIS/HER  SUB-ORDINATES  PLAN  TOGETHER 
   TO SET COMMON GOALS.
     MBO STEPS
       DEVELOP OVERALL ORGANISATIONAL GOALS 
                                                                           F
                                                                           E
         ESTABLISH SPECIFIC GOALS FOR VARIOUS DEPATMENTS, SUB-UNITS & INDIVIDUAL
                                                                           E
                                                                           D
         FORMULATE ACTION PLANS IDENTIFYING THE PROBLEM AREAS              B
                                                                           A
                                                                           C
      IMPLEMENT AND MAINTAIN SELF CONTROL                                  K
      CONDUCT PERIODIC REVIEW OF THE PLANS
      APPRAISE PERFORMANCE OF THE SUB-ORDINATES