MISSION AND

OBJECTIVES
Be sure and sincere about what
you want to achieve and even sky
is not the limit .
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MISSION - DEFINED
EThis is generally an enduring statement
of the organization the extent of which
embodies the decision makers
philosophy; it implies the image which
the organization seeks to project.
EMission has external orientation and
relates the organization to the society in
which it operates
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Example:Mission of Unilever
EHindustan Unilevers commitment to national
priorities has ensured that the company is a
part of the peoples lives at the grassroot level ,
making a difference to India and to the Indians-
in depth , in width and in size. Hindustan
Unilever has always identified itself with the
nations priorities: employment generation ,
development of backward area,agricultural
linkages,exports, contribution to exchequer etc.
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Purpose:Defined
EPurpose is also externally focused but it
relates to that section of the society to
which it serves.; it defines the business
which the company will undertake.
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Example : Purpose of Unilever
EOur purpose in Hindustan Unilever is to
meet the everyday needs of the people
everywhere- to anticipate the aspirations
of consumers and customers and to
respond creatively and competitively with
branded products and services which
raise the quality of life.
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Objectives- Managerial
Pespective
EObjectives are goals , aims or purposes
that the organisation wish over varying
periods of times.
EA managerial objective is an intended
goal that prescribes definite scope and
suggests direction the planning efforts of
a manager .
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Objectives Vs Goals
Dimension Objectives Goals
1) Time Frame Timeless Temporary
2) Specificity General More specific
3) Focus External
environment
Internal
4) Measurement Both may be
quantified
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THE NATURE & PURPOSE
OF MBO
E MBO is concerned with goal setting and
planning for individual managers and their units.
E The essence of MBO is a process of joint goal
setting between a supervisor and a
subordinate.
E Managers work with their subordinates to
establish performance goals that are consistent
with higher organizational objectives.
E MBO helps clarify the hierarchy of objectives as
a series of well-defined means-ends chains.
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THE PROCESS OF MBO
Starting the
MBO
Program
Establishment of
Organizational
Goals and
Plans
Collaborative
Goal Setting
and Planning
Resources
Counseling and
Coaching
Verifiable
Goals and
Clear Plans
Meeting
Communicting
Organizational Goals
and Plans
Periodic
Review
Evaluation



If MBO is to be successful, it must start at
the top of the organization
^ top managers must communicate why
they have adopted MBO, what they think it
will do, and that they are committed to it.
E Employees must be educated about what MBO
is and what their role in it will be.
E Managers must implement MBO in a way that is
consistent with overall organizational goals.
E Key result Areas (KRAs)
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THE MBO PROCESS
E Collaborative goal setting and planning are the
essence of MBO. This involves several steps:
Managers tell their subordinates what organizational and
unit goals and plans top management has established.
Managers meet with their subordinates on a one-to-one
basis to arrive at a set of goals for each subordinate that
both develop and to which both are committed.
Goals are refined to be as verifiable as possible and
achievable within a specified period of time.

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THE MBO PROCESS
Goals must be written and very clearly stated.

Plans developed to achieve the goals must directly
relate to each goal * managers must play the role
of counselors in the goal-setting and planning
meeting.

The meeting should specify the resources that he
subordinate will need to implement his/her plans
and work effectively toward goal attainment.

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THE MBO PROCESS
EConducting periodic reviews as
subordinates are working toward their
goals is advisable.

EAt the end of the period, the manager
meets with each subordinate to review
the degree of goal attainment. The
reasons for both success and failure are
explored. The employee is rewarded on
the basis of goal attainment.
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THE EFFECTIVENESS OF
MBO - STRENGTHS
E Organizations create a powerful motivational
system for their employees by adopting MBO.
E Through the process of discussion and
collaboration, communication is greatly
enhanced.
E With MBO performance appraisal may be done
more objectively.
E MBO focuses attention on appropriate goals
and plans.


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THE EFFECTIVENESS OF
MBO - STRENGTHS
E MBO helps identify superior managerial talent
for future promotion.
E MBO provides a systematic management
philosophy that can have a + effect on the
overall organization.
E MBO facilitates control through the periodic
development and subsequent evaluation of
individual goals and plans.
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THE EFFECTIVENESS OF
MBO - WEAKNESSES
E The major reason for MBO failure is lack of top
management support * after deciding using
it, its implementation is delegated to lower
management * goals and plans cascading
throughout the organization may not be those of
top management.

E Some firms may overemphasize quantitative
goals and burden their systems with too much
paper work and record keeping.
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THE EFFECTIVENESS OF
MBO - WEAKNESSES
E Some managers will not or cannot sit down and
work out goals with their subordinates * they
assign or suggest goals and plans to their
people * resentment and lack of commitment
to the MBO program.
E MBO * well articulated objectives * clarity of
purpose, but also a certain rigidity *
organization must be flexible to survive * more
fluid and yielding objectives * loss of clarity.
Case of MBO GLAXO
SMITHKLINE BEECHAM
E1973 appointment of MBO director
EIdentification of corporate objectives and
KRAs
EGroup approach to objective setting at
corporate , divisional and departmental
level.
EInitially 48 work groups later 37.
EConversional from functional to divisional
basis in 1974- pharma, foods and
chemicals
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