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Management of Objectives (MBO

Management by Objectives (MBO) is a process where management and employees agree on objectives for employees to achieve. The goals cascade down from the organization's vision. Employees have specific objectives for their role and periodic reviews determine progress toward goals. Rewards are given based on achieving objectives. MBO aims to translate organizational goals into clear individual tasks, provide standards for performance measurement, and foster employee growth and motivation through participation in goal setting.

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64 views2 pages

Management of Objectives (MBO

Management by Objectives (MBO) is a process where management and employees agree on objectives for employees to achieve. The goals cascade down from the organization's vision. Employees have specific objectives for their role and periodic reviews determine progress toward goals. Rewards are given based on achieving objectives. MBO aims to translate organizational goals into clear individual tasks, provide standards for performance measurement, and foster employee growth and motivation through participation in goal setting.

Uploaded by

shubham singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Management of Objectives (MBO)

· What is Management by objectives : (MBO ) is a process of defining objectives, within an


organization, so that management and employees agree to the objectives and understand what
they need to do in order to achieve them.

· Main Concept of : 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.

· MBO Strategy : • All individuals within an organization are assigned a special set of
objectives that they try to reach during a normal operating period. • Performance reviews
are conducted periodically to determine how close individuals are to attaining their
objectives. • Rewards are given to individuals on the basis of how close they come to
reaching their goals.

· Principles of MBO : Cascading of organizational vision, goals and objectives • Specific


objectives for each member • Participative decision making • Explicit time period •
Performance evaluation and feedback.

· Objectives or purposes : • Translate main statement into operational terms. • To give


directions and set standards for the measurement of performance. • To measure and judge
performance • To relate individual performance to organizational goal • To foster increasing
competence and growth of subordinates.• To stimulate subordinates motivation

Features of MBO
1. Superior-subordinate participation

2. Joint goal-setting
3. Clarity of goals
4. Better communication and Coordination
5. Joint decision on methodology
6. Makes way to attain maximum result

Advantages
7. Develops result-oriented philosophy
8. Formulation of dearer goals
9. Facilitates objective appraisal
10. Raises employee morale
11. Facilitates effective planning.
12. Acts as motivational force

Limitations
13. Time-consuming
14. Failure to teach MBO philosophy
15. Reward-punishment approach
16. Increases paper-work
17. Creates organizational problems
18. Develops conflicting objectives

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