MANAGEMENT BY

OBJECTIVES
Presented by:

Ashish Prajapati
Seema Patil
Vaibhav Singh
Agenda
 Objective of presentation
 Objectives of an organization taking an
example
 Limitations
 How to overcome these limitations
 Conclusion
Objectives of the presentation
 To study the limitations of MANAGEMENT
BY OBJECTIVES (MBO)
 How to overcome these limitations?
Example PROTON business school
 Socio-economic objective
 Mission
 Overall objective
 Department and unit objective
 Individual objective
Limitation one
 Failure to teach and apply the philosophy
of MBO
 It has to be explained to all the people in
hierarchy that how there can be mutual
benefit from MBO philosophy
Limitation two
 Failure to give guidelines on goal setting
 What the common corporate goals are and
how their own activities fit into it
Limitation three
 Emphasis on short term goal at the
expense of long term goal
Limitation four
 The difficulty of setting verifiable goals with
the right degree of flexibility
 Some times this might lead to
questionable behavior and unethical
means to achieve the objective
Limitation five
 Overuse of quantitative goals which may
downgrade important goal (qualitative)
Limitation six
 Positive and active participation by all the
people at all the hierarchal levels may not
be easily forthcoming
Limitation seven
 Time consuming and difficult to bring to
action especially in the introduction phase
How to overcome these
limitations…
 Set rational objectives which can be realized
 Short range plans must be coordinated with long
term ones
 Objectives must be set by analyzing the nature
of job, how much they can do it and how much
they can get done at all the levels
 Encourage people and instill the feeling of
mutual benefits
Conclusion
 Even if there are limitations of MBO
philosophy, defining objectives is an
indispensable part of planning and
decision making
 Being flexible to some extent according to
the changing conditions becomes
important
THANK YOU!