MANAGEMENT BY OBJECTIVES MBO Dr Mudassar H Shah

MANAGEMENT BY OBJECTIVES (MBO) Dr. Mudassar H. Shah Department of Communication and Media Studies

What is MBO? Management by objectives (MBO) is a systematic and organized approach that allows Public Relations strategist to focus on achievable goals and to attain the best possible results from available resources. Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his book 'The Practice of Management'. In the 90 s, Peter Drucker himself decreased the significance of this organization management method, when he said: "It's just another tool. It is not the great cure for management inefficiency.

Core Concepts of MBO According to Drucker managers should "avoid the activity trap", getting so involved in their day to day activities that they forget their main purpose or objective. Instead of just a few top-managers, all managers should: 1. participate in the strategic planning process, in order to improve the implementability of the plan, and 2. implement a range of performance systems, designed to help the organization stay on the right track.

MBO and PR Strategic Focus MBO PR strategic managers focus on the results, not the activity. They delegate tasks by "negotiating a contract of goals" with their subordinates without dictating a detailed roadmap for implementation. MBO is about setting yourself objectives and then breaking these down into more specific goals or key results.

Main Principle of MBO The principle behind MBO is to make sure that everybody within the organization has a clear understanding of the aims, or objectives, of that organization, as well as awareness of their own roles and responsibilities in achieving those aims. The complete MBO system is to get managers and empowered employees acting to implement and achieve their plans, which automatically achieve those of the organization.

Where to Use MBO The MBO style is appropriate for knowledgebased enterprises when your staff is competent. It is appropriate in situations where you wish to build employees' management and self-leadership skills and tap their creativity, tacit knowledge and initiative. Management by Objectives (MBO) is also used by chief executives of multinational corporations (MNCs) for various Image building tasks and strategic goals of organization.

Setting Objectives "The principle behind this is to ensure that people know what the organization is trying to achieve, what their part of the organization must do to meet those aims, and how, as individuals, they are expected to help. This presupposes that organization's programs and methods have been fully considered. If they have not, start by constructing team objectives and ask team members to share in the process. “

The team of your Campaign? Your team should master on five basic operations : 1. Setting objectives 2. Organizing the group 3. Motivating and communicating 4. Measuring performance, and 5. Developing people, including yourself.

How to begin ? The review mechanism enables PR strategists to measure the performance of his team(s), especially in the key result areas: 1. marketing (working on sponsorship) 2. innovation and creativity 3. human organization 4. financial resources 5. physical resources 6. productivity 7. social responsibility 8. outcome requirements.

Role of every team member In strategic campaign design you have to ask each yourself three questions: What should you hold yourself accountable for? What information do you need? What information do you owe the rest of your team?

The Five-Step MBO Process

Types of Objectives Routine objectives Innovation objectives Improvement objectives The objectives must be: focused on a result, not an consistent specific measurable related to time attainable activity

Six MBO Stages Define corporate objectives at board level Analyze management tasks and devise formal job specifications, which allocate responsibilities and decisions to individual managers Set performance standards Agree and set specific objectives Align individual targets with corporate objectives Establish a management information system to monitor achievements against objectives

Client Orientation Client orientation is defined as an approach to sales and client-relations in which staff focus on helping customers to meet their long-term needs and wants. Here, management and employees align their individual and team objectives around satisfying and retaining customers.

How to know Client’s Orgnization Background history Development Key People in the Organization The functions of the Organization The values Organization Own Key Achievements

5 Ways to Create a Client-Oriented Culture 1. Start at the top 2. Hire people who fit 3. Get everyone involved 4. Trust your team 5. Establish good lines of communication

How to avoid Ethical pitfalls with Client 1. Understand what constitutes a multiple relationship 2. Protect confidentiality 3. Respect people's autonomy 4. Know your supervisory responsibilities 5. Identify your client and role 6. Document, document 7. Practice only where you have expertise 8. Know the difference between abandonment and termination 9. Stick to the evidence 10. Be accurate in billing