Management by objectives (MBO
- 2. •Waheed Ali (80) •Sehar(81) •Qazii Azizullah(72) •A.D shaikh •Yasir (09) Group C (of Hard worker)
- 3. . . . . . Content of chapter No #07 • Explain What is MBO? • Linkage MBO to goal setting theory. • Employee recognition. • Employee involvement program. • And Linking with motivation theories. • What is job redesign and scheduling program. • Linking job redesign and scheduling to motivation theories. • What are Variable pay program. • Linking variable pay program and expectancy theory. • Skilled based pay program. • Flexible benefits.
- 4. Objectives of our presentation • Explain what is MBO • Four ingredients common to MBO • Linking MBO to goal setting theory • Explain important guidelines of goal setting theory • What is Employee Recognition and its important. • Keys to giving employee recognition • Employee involvement program • Linking employee recognition and reinforcement theory • Quality circle • Linking employee involvement program and motivation theories • What is job redesign and scheduling program • Representative participation • participative management
- 5. Understand the implications of employee engagement for management in OB
- 6. Take a glance on these Look at the questions given below and try answering them. • What is MBO and why company use it when ever defining gaols and objectives? • What is background about MBO? Who is the father of this point of view? • How this approach motivate employee toward achievement • What do you know about goal setting theory • Who is founder of this theory? • What are the importance of this theory
- 7. What is MBO? Stands for Management by objective;- MBO literally means management on the basis of objectives. Peter F.Drucker is the father of this point of view of management. He explained his view in 1954 in his book “the practice of management”. He said to managers that “Business performance requires that each job be directed toward the objectives of the whole business”. Said that determination of objectives should be collectively done by all the official concerned including sub ordinates.
- 8. Introduction The concept of collectively determination of objectives believes that it lead to involvement and involvement leads to commitment. It means when all person sit together and lay down the objectives than it will not be difficult to achieve them. When all person will try to achieve these objectives they will have a fallings that they are doing there own work instead of some one else’s. It means involvement with objectives leads to attachments of feeling in this situation there is no need of external control.
- 9. Definition MBO(by Peter F.Drucker) is a management model that aims to improve performance of an organization by clearly defining objectives that are agreed to by both management and employees.
- 10. Four common ingredients Lets take a glance. Let us look at each in detail. Goal specificity1 2 Participative Decision Making Explicit Period 4 Feedback 3
- 11. Cont’ Let us look at each in detail. 1 2 3 4 1 A goal must be specific and It should answer the who, what, when, where, why, and how of the expectations of the goal Goal specificity Participative Decision Making Explicit Period Feedback
- 12. Cont’ Let us look at each in detail. 1 Goal specificity 2 3 Explicit Period 4 Feedback 2 Participative Decision Making The manager and employee jointly choose the goals and agree on how they will be achieved.
- 13. Cont’ Let us look at each in detail. 1 Goal specificity 2 Participative Decision Making 3 4 Feedback 3 Explicit Period A Time period must be set so as to ensure everything works out within the specified time frame
- 14. Cont’ 1 Goal specificity 2 Participative Decision Making 3 Explicit Period 44 Feedback The final ingredients in an MBO program is continuous feedback on performance and goals that allows individuals to monitor and correct their own actions.
- 15. linking to Goal setting theory
- 16. Goal setting theory In 1960’s, Edwin Locke put forward the Goal-setting theory of motivation. This theory states that goal setting is essentially linked to task performance. It states that specific and challenging goals along with appropriate feedback contribute to higher and better task performance. In simple words, goals indicate and give direction to an employee about what needs to be done and how much efforts are required to be put in. specific and difficult goals, with feedback, lead to higher performance.
- 17. Goal-Setting Guidelines The following are some of the important guidelines Difficult goals leads to higher performance than are less difficult ones. Goals are most likely to motivate people toward higher performance when they are accepted and there is commitment to them. Specific goals are more likely to lead to higher performance than vague or very general ones. Task feedback leads to motivate people toward higher performance. Goals are most likely to lead to higher performance when people have the abilities and the feelings of self-efficacy required to accomplish them.
- 18. • Explain what is MBO • Explain important guidelines of goal setting theory • Linking MBO to goal setting theory • Four ingredients common to MBO Objectives achieved • What is Employee Recognition and its important. • Keys to giving employee recognition • Employee involvement program • Linking employee recognition and reinforcement theory • Quality circle • Linking employee involvement program and motivation theories • What is job redesign and scheduling program • Representative participation • participative management
- 20. What is Employee Recognition?
- 21. Cont’
- 22. Why Employee Recognition is Important •Helps to attract and retain key employees. •Motivates employees to perform at higher levels. •Increases employee productivity. •Can increase employee competitiveness. •Can increase company revenues and profitability. •Improves business quality and service. •Improves safety. •May lower stress. •Reduces absenteeism and turnover costs. •Encourages employees to continue education and training. •improves productivity.
- 23. There are many methods and channels for giving recognition. Although commonly given by managers or supervisors.It can be given by anyone. For example: •Peers •Managers •Senior Leaders •Customers Who Gives Recognition?
- 24. Keys for giving positive feedback to employees: As Soon - Timing is important; don't delay praise 4 3 2 1 As Sincere - Do it because you're truly appreciative As Specific - Give details of the achievement As Proactive - Don't wait for perfect performance
- 25. Linking employee recognition and reinforcement theory
- 26. Employee recognition program in practice • Best performance of the month •Award from boss.
- 27. • Explain important guidelines of goal setting theory • What is Employee Recognition and its important. • Linking MBO to goal setting theory • Four ingredients common to MBO • Explain what is MBO Objectives achieved • Keys to giving employee recognition • Employee involvement program • Linking employee recognition and reinforcement theory • Quality circle • Linking employee involvement program and motivation theories • What is job redesign and scheduling program • Representative participation • participative management
- 29. Employee involvement •A participative process that uses the input of employees to increase their commitment to the organization’s success. •The direct participation of staff to help an organization fulfil its mission and meet its objectives by applying their own ideas, expertise, and efforts towards solving problems and making decisions. •Regular participation of employee in deciding how work is done, making suggestion for improvement, goal setting, planning and monitoring of their performance.
- 30. Functions Of Employee Involvement Employee motivation Employee empowerment Teams and team work Performance appraisal
- 32. • Processes of Participative management. Information Sharing. Training. Employee decision making. Reward. Participative Management.
- 34. Quality Circle • QUALITY CIRCLE IS A SMALL GROUP OF PEOPLE. • WHO VOLUNTARILY PERFORM QUALITY IMPROVEMENT ACTIVITIES AT THE WORK PLACE. • They agree to meet on a regular basis to discuss & solve problems related to work. • Employee Participation to decision making & Problem solving improve the quality of work.
- 35. Major Attribution of Quality Circle Quality Circle is a problem solving technique Quality Circle is a human resource development technique. Quality Circle is a form of participation management
- 36. Composition of Quality Circle Members Circle leaders Coordinators Steering committee Executive committee Facilitator
- 37. • Explain important guidelines of goal setting theory • Linking MBO to goal setting theory • Four ingredients common to MBO • Explain what is MBO Objectives achieved • What is Employee Recognition and its important. • Keys to giving employee recognition • Employee involvement program • Linking employee recognition and reinforcement theory • Quality circle • Linking employee involvement program and motivation theories • What is job redesign and scheduling program • Representative participation • participative management
- 38. Linking Employee Involvement Programs and Motivation Theories
- 39. Linking Employee Involvement Programs and Motivation Theories •Theory Y is consistent with participative management. •In terms of two-factor theory, employee involvement programs could provide intrinsic motivation by increasing opportunities for growth, responsibility, and involvement in the work itself
- 40. Cont’ •And extensive employee involvement programs clearly have the potential to increase employee intrinsic motivation in work tasks. •For responsibility, achievement, recognition, growth, and enhanced self-esteem.
- 41. Assumption 1: Employees can perceive their job as relaxing and normal. Assumption 2: Employees may not require only threat, external control and coercion to work, but they can use self- direction Assumption 3: If the job is rewarding and satisfying, then it will result in employees’ loyalty and commitment to organization. Theory Y is Called Positive theory . According to McGregor, the perception of managers on the nature of individuals is based on various assumptions Assumption 4: An average employee can learn to admit and recognize the responsibility. In fact, he can even learn to obtain responsibility. Theory Y (Participative Management )
- 42. ERG Theory of Motivation Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of motivation. He re categorized Maslow’s hierarchy of needs into three simpler and broader classes of needs: •it includes an individual’s physiological and physical safety needs.
- 44. Herzberg’s Two-Factor Theory of Motivation In 1959, Frederick Herzberg Created two-factor theory there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction
- 45. Hygiene factors- . The hygiene factors symbolized the physiological needs which the individuals wanted and expected to be fulfilled. Hygiene factors include: Pay Company Policies and administrative policies Fringe benefits – Physical Working conditions - Status Interpersonal relations - Job Security -
- 46. Motivational factors-According to Herzberg, the hygiene factors cannot be regarded as motivators. The motivational factors yield positive satisfaction. Motivational factors include: •Recognition •Sense of achievement •promotional opportunities •Meaningfulness of the work •Responsibility
- 47. Implications of Two-Factor Theory hygiene factors to avoid employee dissatisfaction. Motivation Factors to employees are motivated to work and perform harder and better. Focusing on the motivational factors can improve work-quality.
- 48. • Quality circle • Employee involvement program • participative management • Explain important guidelines of goal setting theory • Linking MBO to goal setting theory • Four ingredients common to MBO • Explain what is MBO Objectives achieved • What is Employee Recognition and its important. • Keys to giving employee recognition • Linking employee recognition and reinforcement theory • Linking employee involvement program and motivation theories • What is job redesign and scheduling program • Representative participation
- 50. Job redesign is an effort where job responsibilities and tasks are reviewed, and possibly re-allocated among staff, to improve output. Redesigning jobs can lead to improvements in both productivity and in job satisfaction. The main objective of conducting job redesigning is to place the right person at the right job and get the maximum output while increasing their level satisfaction. Job redesign
- 51. Job Redesign • To Increase Productivity • To Increase Job Satisfaction
- 52. Steps in the Process First • clarify exactly what is being done today versus the job description, and identify any difficulties in completing work. Second • determine skills of the employees and their level of fit with their current positions. Next, re-allocate tasks so that employees have a better fit between their skills, interests, and position requirements. Third • Then provide training as needed to get employees ready for their new responsibilities. • . Next, implement the program by providing a new job description to each employee and having them focus on the tasks in their revised position.
- 53. Job Rotation • If employees suffer from over reutilization of their work, one alternative is job rotation , or the periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level (also called cross-training ). • job rotation The periodic shifting of an employee from one task to another. Job Rotation
- 54. Job Enlargement •Increasing the number of tasks performed by a worker For example An accountant task is General Accounting but he do work of Payroll Also Job Enlargement
- 55. Job Enrichment • Job enrichment Allows employees to assume more responsibility, accountability and independence when learning new tasks or to allow for greater participation and new opportunities. •It is an Attempt to Motivate the Employees This is Further described as Vertical Loading of the job Job Enrichment
- 56. Flex time • Non-traditional work scheduling practice which allows full-time employees to choose their individual starting and quitting times within certain limits (such as 'not earlier than 5 a.m.' and 'not later than 9 p.m.'). Flextime periods usually precede or follow a core time during which all employees must be present. Flex time
- 57. job sharing • An arrangement that allows two or more individuals to split a traditional 40-hour-a- week job • One might perform the job from 8:00 a.m. to noon and the other from 1:00 p.m. to 5:00 p.m., or the two could work full but alternate. job sharing
- 58. Telecommuting It might be close to the ideal job for many people. No commuting, flexible hours, freedom to dress as you please, and few or no interruptions from colleagues. It’s called telecommuting , and it refers to working at home at least 2 days a week on a computer linked to the employer’s office. (A closely related term—the virtual office —describes working from home on a relatively permanent basis.) Telecommuting Telecommuting
- 59. Achieved • Explain what is MBO • Four ingredients common to MBO • Linking MBO to goal setting theory • Explain important guidelines of goal setting theory • What is Employee Recognition and its important. • Keys to giving employee recognition • Employee involvement program • Linking employee recognition and reinforcement theory • Quality circle • Linking employee involvement program and motivation theories • What is job redesign and scheduling program • Representative participation • participative management
Editor's Notes
- #10: specific performance goal are jointly determined by employees and their managers, progress toward accomplishing those goals is periodically reviewed and rewards are allocated on the basis of this progress.
- #15: 1. Goal Specificity:Â Firstly specific goals are set which when achieved should bring forward the results that support organizational, operational, tactical, strategic objectives and plan. 2. Participative Decision Making:Â Goals when set by the participation of subordinates allows them to achieve goals that are difficult. However the goals set must be accepted by the subordinates as it impacts positively from motivation to performance of the employee. 3. Explicit Performance Period:Â Time period must be set so as to ensure everything works out within the specified time frame. Explicit time period also allows employees to carry out actions in a proper planned manner so as to meet the deadline. 4. Performance Feedback:Â Periodic performance feedback helps employees evaluate whether they are on target or off target so that they can retain or adjust their behaviour. Their performance is greatly affected in accordance to the quality of feedback provided. If we merge all MBO is a program that encompasses: § specific goals § participatively set § for an explicit time period § with feedback on goal progress
- #42: Assumption 5:Employees may not require only threat, external control and coercion to work, but they can use self-direction
- #52: From the analysis of my position in part one of the study on the job design of my brokers position at my organization it became clear that what was lacking at my company to hinder job satisfaction and productivity was assistance from employees. I identified that my having the entire responsibilities at the company was preventing me from achieving full autonomy of being able to do the tasks that I want to do that could be more productive. To be more productive I need to have less low end responsibilities and more time for more important responsibilities. To accomplish this will require designing a position for a new hire and a plan on how to do so. To design the position properly I will review the job design methods.
- #54: For Example : At Singapore Airlines, a ticket agent may take on the duties of a baggage handler. Advantages of job rotation Many organizations use job rotation for new managers to help them get a picture of the whole business as well. The strengths of job rotation are that it reduces boredom, increases motivation, and helps employees better understand how their work contributes to the organization. An indirect benefit is that employees with a wider range of skills give management more flexibility in scheduling work, adapting to changes, and filling vacancies. Disadvantages of job rotation Training costs increase, and moving a worker into a new position reduces productivity just when efficiency at the prior job is creating organizational economies. Job rotation also creates disruptions when members of the work group have to adjust to the new employee. supervisors may also have to spend more time answering questions and monitoring the work of recently rotated employees.
- #56: Advantages of Job enrichment Employees typically work with managers to set job enrichment goals, identify desired competencies, and find appropriate placement. allowing employees to cover for one another and prepare for possible future promotions. job enrichment shows it reduces absenteeism and turnover costs and increases satisfaction, but not all programs are equally effective.
- #57: For Example : At Singapore Airlines, a ticket agent may take on the duties of a baggage handler. Advantages of job rotation Many organizations use job rotation for new managers to help them get a picture of the whole business as well. The strengths of job rotation are that it reduces boredom, increases motivation, and helps employees better understand how their work contributes to the organization. An indirect benefit is that employees with a wider range of skills give management more flexibility in scheduling work, adapting to changes, and filling vacancies. Disadvantages of job rotation Training costs increase, and moving a worker into a new position reduces productivity just when efficiency at the prior job is creating organizational economies. Job rotation also creates disruptions when members of the work group have to adjust to the new employee. supervisors may also have to spend more time answering questions and monitoring the work of recently rotated employees.
- #59: For example One recent survey of more than 5,000 HR professionals found that 35 percent of organizations allowed employees to telecommute at least part of the time, and 21 percent allowed employees to telecommute full-time.