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Management by Objectives

By balongos Feb 25, 2013 1982 Words


1. Conflict is the struggle that arises when the goal-directed behavior of another person or group. Whether conflict benefits or harms an organization depends on how it is managed.

There are four basic types of conflict and combination of these that can arise in an organization. 1. Issue conflict -is usually a disagreement between two or more groups arising from differences in organizational viewpoint. 2. Intrapersonal - conflict between two individuals is based on personal differences. It may originate as an issue conflict and develop into a personality clash. 3. Role conflict – this occurs when an individual faces pressures from several sources. 4. Intrapersonal.- an individual’s value and beliefs are incompatible with its actions While the term conflict generally is associated with negative encounters, conflict itself is neither inherently good nor inherently bad. In fact, engaging in conflict can have positive effects on relationships and organizations. Consider these benefits:

• Conflict fosters an awareness that problems exist.
• Discussing conflicting views can lead to better solutions. • Managing conflict is quicker and more efficient than letting conflicts fester. • Challenging old assumptions can lead to changes in outdated practices and processes. • Conflict requires creativity to find the best outcomes. • Conflict raises awareness of what is important to individuals. • Managing conflicts appropriately helps build self-esteem. • Managing conflicts well is a sign of maturity.

• Conflicts are challenging.
• Conflicts are exciting.
• Conflicts encourage people to grow.
• Conflicts create opportunity.
Advantages: Spirit of competition drives all to excel to higher levels.

Disadvantage: The competition gets so fierce that people forget they are ultimately on the same team 2. Causes and sources of conflicts
Conflict begins in an organization when group of colleagues start gossiping, walking in factions, not taking there role essential that might leads to conflict. Three Sources of Conflict According To Robbins

1. communicational - conflicts arising from misunderstandings etc. 2. structural - conflicts related to organizational roles
3. personal - conflicts coming from individual differences. Methods of conflict management which are appropriate in one case may not necessarily be appropriate when applied to a conflict generated from another source. Common Causes of Conflict

← scarcity of resources (finance, equipment, facilities, etc) ← different attitudes, values or perceptions
← disagreements about needs, goals, priorities and interests ← poor communication
← poor or inadequate organizational structure
← lack of teamwork
← lack of clarity in roles and responsibilities

Figure 2. Conflict Process

Managing Conflict Guidelines
1) Focus on defeating the mutual problem rather than on each other. Try not to personalize the conflict; instead, view the problem as a depersonalized objective to be mutually achieved through joint problem solving. 2) Avoid voting, averaging, or trading to reach a solution. Talk things out. 3) Seek facts to resolve points of disagreement. Don't make decisions based on pure speculation, 4) Recognize that conflict can be helpful. Avoid making conflict a threatening or defense-invoking process. 5) Don't fail to recognize other's needs and positions. Avoid acting solely on behalf of your own interest. HOW DO YOU REACT TO CONFLICT?

|ADVANTAGES |DISADVANTAGES | |Postpone a crisis or conflict that you cannot deal with at |Does not resolve the problem | |the time | | |Provides "cooling-off" period |Leaves anger, hurt feelings and resentment | |May make sense is issue is trivial |  | |May make sense if no chance of "winning" |  |

|ADVANTAGES |DISADVANTAGES | |Maintain friendly relationship |Resentment, being used or cheated | |Makes sense if the issues are more important to the other |Sense of being owed something for "giving in" | |party | | |Acceptable if outmatched or losing |  | |Perception of concern or altruism |  | |Hope that others learn from mistakes |  |

|ADVANTAGES |DISADVANTAGES | |You might win |Other side loses | |Useful when quick action is vital |You might lose | |Useful when unpopular action has to be taken |Need for revenge? |

3. Motivation is the set of forces that cause people to choose certain behaviors from among the many alternatives open to them. Motivation – is the set of processes that moves a person toward a goal NEED-BASED APPROACHES TO MOTIVATION.

Need-based approaches to motivation focus on what motivates employees to choose certain behaviors as shown on the following diagram.

4. Maslow's hierarchy of needs

An interpretation of Maslow's hierarchy of needs, represented as a pyramid with the more basic needs at the bottom.

Maslow's hierarchy of needs is predetermined in order of importance. It is often depicted as a pyramid consisting of five levels: the lowest level is associated with physiological needs, while the uppermost level is associated with self-actualization needs, particularly those related to identity and purpose. The higher needs in this hierarchy only come into focus when the lower needs in the pyramid are met. Once an individual has moved upwards to the next level, needs in the lower level will no longer be prioritized. If a lower set of needs is no longer being met, the individual will temporarily re-prioritize those needs by focusing attention on the unfulfilled needs, but will not permanently regress to the lower level. The lower four layers of the pyramid are what Maslow called "deficiency needs" or "D-needs": physiological (including sexuality), security of position, friendship and love, and esteem. With the exception of the lowest (physiological) needs, if these "deficiency needs" are not met, the body gives no physical indication but the individual feels anxious and tense. Stress – is a way we react-physically and emotionally to change. Stress can be positive or negative.

3 Types of stress
1. Physical
2. Mental
3. Emotional
Common Stress Symptoms
✓ Insomnia / sleep disorders
✓ Sexual dysfunction
✓ Chronic illnesses
✓ Negative attitude
✓ Forgetfulness
✓ Confusion
✓ Whirling mind
✓ Anxiety
✓ Depression
✓ Frustration


– In this first step, the decision maker sets the objectives for the decision. Step 2 : IDENTIFY CONSTRAINTS
- Constraints in some way limit the decision maker’s choices. Decision constraints are sometimes presented in terms of desired specification or performance standards. Step 3 : IDENTIFY ALTERNATIVES

- The decision making process involves making a choice between two or more alternatives. In this step, the decision maker identifies alternative solutions that meet the constraints outlined in step 2. STEP 4 : GATHER APPROPRIATE INFORMATION

- During this step, the decision maker gathers information that may provide insight as to which alternative to choose. STEP 5 : EVALUATE ALTERNATIVES
- In this step, the decision maker evaluates each alternative. A decision can be rendered based on available information. STEP 6 : CHOOSE THE MOST ACCEPTABLE ALTERNATIVE
- In this step, the manager examines the ranking of alternatives and selects the most acceptable alternative, which is often the top ranked alternative.

➢ A small number of people with complimentary skills who are committed to a common purpose, performance goals, and approach and which they hold themselves mutually accountable.
or simply:
T – Together
E – Everyone
A – Achieves
M – More
➢ Group cooperative learning to try and solve a challenge. ➢ A process of molding many diverse individuals into a team. ➢ A coverall term given to methods of developing an effective team.


T is for Talent
E is for Enthusiasm
A is for Accountability
M is for Management
W is for Work-able
O is for Openness
R is for Respect
K is for Keenness


1. Define OD, & what is the main goal of OD & give the benefits of OD.


OD – is a response to change, a complex educational strategy intended to change the beliefs, attitudes, values and structure of organization so that they can well adapt to new technologies, markets, challenges and the dizzying rate of change itself.


The main goal of the organization development is to focus on the gap that exists between where a group or organization is and where they would like to be. It is also to focus on the role of the organization in large-scale organization change, and how change management strategy help leaders of organization to achieve desire business objectives which ultimately dictate a merger, a acquisition, downsizing or similar systematic change in order to maintain the organization viability.


OD benefits the organizations that need a change/response to the needs of employers who not only want to move their organization forward in terms of business objectives, but also in terms of employee engagement.

The outcomes of organizational development may include increases in: ■ Profits (cost reduction, for nonprofits).
■ Innovation.
■ Customer satisfaction.
■ Product and service quality.
■ Cost effectiveness.
■ Organizational flexibility.
■ Personal feelings of effectiveness.
■ Job, work, and life satisfaction.

■ Empowering leaders and individual employees.
■ Creating a culture of continuous improvement and alignment around shared goals. ■ Making change easier and faster.
■ Putting the minds of all employees to work.
■ Enhancing the quality and speed of decisions.
■ Making conflict constructive instead of destructive. ■ Giving leaders more control over results, by giving employees more control over how they do their jobs.


1. Planning; 2. Taking Actions; 3. Measuring Results

2. MBO is considered a highly participatory management system, which allows employees to be active participants in establishing guidelines for their performance and appraising their accomplishments.

Main Principle
The principle behind Management by Objectives (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.

When setting goals, use the S.M.A.R.T. method: S.M.A.R.T. is an acronym that refers to the qualities of a well-written goal. Table 1 explains S.M.A.R.T. |Specific |Specific objectives are set by the | | | |organization’s top management | | |Measurable |All objectives are observable or measurable | | |Achievable |Objectives do not surpass the scope of the | | | |employee’s or department’s abilities | | |Realistic |Objectives do not exceed reasonable work | | | |expectations and/or knowledge base | | |Time-phased |Time constraints are set for achieving each | | | |objective and reevaluated periodically | |

Advantages of MBO

• The need to clarify objectives is stressed and suggestions for improvement are obtained for all management levels; • All managers have a clear idea of the important areas of their work and of the standards required; • The performance of staff can be assumed and their needs for improvement highlighted; • Greater participation may improve morale and communication; • Managers have to plan to achieve results, which are a means of achieving growth and profits; • It makes individuals more aware of organizational goals. QUALITY CIRCLE

The term quality circles refers to small groups of line employees (usually ten or fewer) who meet periodically outside of regular work hours to discuss ways to improve the quality of products they produce and the efficiency and effectiveness of the production processes they oversee. Although nominally voluntary, supervisors typically initiate quality circles, and attendance is considered by employees as a required part of their jobs. Proponents consider quality circles an effective way to foster a sense of involvement and to effectively harness the knowledge and expertise of lower-ranking workers. Quality circle are applicable to a very wide variety of business situation and problems, employees will be given a chance to make better suggestion for improving process than management, by that employees are motivated by their participation in making such improvement, by that implementing correctly quality circle can help a business reduce cost, increase productivity & improve employees morale. Thus, implementing Quality Circle in an organization is highly recommendable. -----------------------

1. Don’t let minor aggravation get to us.
2. Don’t succumb to guilt
3. Develop strategies
4. Learn to accept and adapt to change
5. Change the way we look at stress
6. Develop a support system
7. Learn to accept the thing we can’t change
8. Develop a personal anti-stress regimen
9. Don’t take it personally
10. Believe in ourselves

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