5 main Processes of Management by Objectives:

1. Preliminary Setting of Objectives at the Top:

First the top manager decides the long and short term goals. Subordinate staffs are also involved in setting the objectives. It is not trusted over them. Objectives framed at this stage are tentative and subject to modification”.

It is foolish to push top management dictated objectives down the throats of subordinates since forced objectives, can hardly induce an indispensable sense of subordinate commitment”.


2. Clarification of the Organisational Roles:

Organization’s goal must be compared with the areas of fuzziness where classification is needed. Coordination must be ensured at this stage.

3. Setting up subordinate’s Objective:

“After making sure that pertinent general objectives, strategies and planning premises are disseminated to the subordinate manager concerned, the superior can then proceed to work with him in setting his objective”.


The superior must hear his subordinates as to their capacities to accomplish the goals. The final responsibility for approving goals for his subordinates must vest the superior:

4. Goals and Resources:

Goals are tied to the resources-like capital, material and human resources to accomplish the result.

5. Recycling the objective:


Meeting point in setting the objectives by a superior and his subordinates is needed and it is done by recycling the objectives framed by both.

“This process is worth the time. People involved will have better understanding of their target and how they fit, they cannot help but have a better feeling of commitment to meet them, the structure of objectives is likely to be characterized by a better fit and the people involved are more likely to meet their targets”.