ELECTRICAL DEPARTMENT (3 RD ELECTRICAL)  Jadeja Yuvrajsinh ( )

MANAGEMENT BY OBJECTIVES

IN SIMPLE WORDS, MBO IS… objectives as a toolby managers in fulfillingmanagerial roles MBO emphasises the importance of objectives as a tool to be used by managers in fulfilling their managerial roles (accomplish their tasks) Divide problem into manageable, “bite- size” chunks

NATURE OF MBO  Popularized by Peter Drucker in  “Management by objectives works if you know the objectives. Ninety percent of the time you don’t.”-Peter F. Drucker  Works well within the U.S. culture, but often fails in others due to different styles in management  Works well because all levels are involved in achieving the ultimate goal

CONCEPTS OF MBO Peter Drucker also stated that:  For the business to succeed, the managers and employees must work towards a common goal  Managers must identify and agree targets for achievement with subordinates  Managers must negotiate the support needed to achieve the targets with subordinates  Evaluate the objectives over time

MBO PRINCIPLES 1. Cascading of organizational goals and objectives 2. Specific objectives for each team member 3. Participative decision making 4. Explicit time period 5. Performance evaluation & feedback

IMPORTANCE OF MBO  Improves employee motivation  Improves communication in the organisation  Flags up and highlights training needs required to achieve objectives  Improves overall performance and efficiency  Attainment of goals can lead to the satisfaction of Maslow’s higher order needs

The Organizing Process

Organizing Function is helpful by:. 1. Assuring more efficient use of the organization’s resources. 2.Improving employee understanding of job duties and responsibilities. 3. Improving employee morale. 4. Providing a sense of direction for each of the organization’s functional areas.

Organization’s Objectives  Must be clearly defined, understood, and accepted by each individual concerned with their attainment.

Chain of Command  Identifies who reports to whom within an organization.

Unity of Command  States that each employee should be directly responsible to one supervisor.

Organizational Structures  Determines the authority relationships among it employees  Common structures:  Line  Line and staff  Functional  Product  Committee  Matrix

Line Structure  Is the oldest and simplest of structures.  Has direct authority flowing vertically from the top.  Is generally found in small organizations because support staff is needed once they begin to grow.

Line and Staff Structure  Has line authority similar to line structure.  Specialized staff activities are added that support line activities.  Staff employees assist the line function.

Functional Structure  Tends to parallel the departments in many organizations  Line managers have both line and functional authority.  Most commonly found in small-and medium-sized organizations. It tends to centralize decision making at top levels of the organization.

Product Structure  Company’s products provide a basis for its structure.  Each major product is given division status.  Incorporates line and staff structure into these divisions.  Each product tends to operate independently of other divisions.

Committee Structure  Is often used in conjunction with line, line and staff, and functional structures.  Some committees perform important managerial functions; others are advisory.

Matrix Structure  Is often used by organizations undertaking complex projects.  Results in the formation of temporary new units to accommodate the undertaking of a new project.  Involves temporarily borrowing employees from other areas of the organization and assigning them to the new temporary unit.

The Organization Chart  Identifies lines of authority.  Gives employees a better understanding of the formal structure of the organization.  Helps identify areas of overlapping responsibility that should be eliminated.  Identifies promotional opportunities for job applicants and new employees.  Identifies areas suitable for training and  orientation.

Guidelines for Preparing Organization Charts  Place individuals/departments in relation to their hierarchical level.  Identify vertical and horizontal authority by solid lines.  Identify functional authority by dotted lines.  Use complete titles on the chart.  Include on the chart name of organization and its date of preparation.

The End