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View all our courses and get certified on https://academy.marketing91.com Management by Objectives is a process where both the superior managers and subordinates work together to define the common organizational goals for every employee and their area of responsibility. Management by Objectives also referred to as MBO, is used as a tool to assess the contribution of every employee against expected results A small description is given about the two companies following MBO 1. Intel 2. Glaxo India Ltd Features of MBO • Requires joint participation of superior managers and subordinate • Setting measurable, verifiable and tangible goals cooperatively • Onus on what to accomplish and not on how to accomplish • Focus on attainable goals • 24*7 support from superiors Steps in MBO Planning 1. Define organizational objectives and goals 2. Proper manager-subordinate involvement to define individual goals 3. Allocating adequate resources like tools and materials after consulting with subordinates to achieve desired goals 4. Implementation of plans by subordinates 5. Review and appraisal of performance periodically by both the manager and subordinates Advantages of MBO • As Management by Objectives is a result-oriented concept it becomes necessary to develop group and individual goals and subsequent action plans • Boost employee morale via participation and communication • Inspires effective planning process • Encourages creativity and imagination • Improves leadership skills Examples of companies following MBO are 1. Google 2. Madura Coats 3. BHEL (Bharat Heavy Electronics Limited) 4. Grindlays Bank 5. Blue Star 6. Shaw Wallace This video is on Management by Objectives and it has the following sub-topics. Time Stamps 0:00 Introduction to Management by Objectives 00:33 Companies following MBO 01:18 Features of MBO 02:12 Steps in MBO Planning 03:01 Advantages of MBO 03:58 Companies following MBO