Mbo is the motivating factor or controlling technique
Active participation of subordinate in goal setting and performance reviews helps to satisfy ego and self-actualisation needs.
After reading you will understand the basics of this powerful strategic management tool. The entire process is a combination of planning and control.
Introduction of mbo
What is Management By Objectives? By increasing commitment, managers are given the opportunity to focus on new ideas and innovation that contribute to the development and objectives of organizations. Many variations are found in the practice of MBO. This continuous feedback is supplemented by periodic formal appraisal meetings in which superiors and subordinates can review progress toward goals, which lead to further feedback. Clarifies Organization: MBO forces management to clarify organizational roles and structures. In the review meetings, progress is assessed, weaknesses and constraints are identified and steps to be taken to improve performance are decided. Device for Organizational Control and Systematic Evaluation: It serves as a device for organizational control integration. It is important to make fair and correct assessments of the achievements against the setting of measurable goals. The goals are periodically reviewed and revised to keep them flexible and up-to-date. Create a clear path with sufficient evaluation moments so that growth and development can be monitored accurately. In step two, a key component of the objectives was that they are measurable in order for employees and managers to determine how well they are met. Locating Weak and Problem Areas: It helps in locating weak and problem areas because of improved communication and organization structure. The open atmosphere for appropriate objective-setting is absent because of differences in the status of subordinates.
Management by objectives, or MBO, is a management technique that involves management and employees talking to each other to set goals and decide on a course of action, and then working together to fulfill those goals.
Limitations of MBO Although MBO is generally taken as the panacea for all the problems of an organization, it is not without weaknesses or limitations. The danger of inflexibility also causes a serious problem since managers may strive for goals that have been made obsolete by revised corporate objectives, changed premises, or modified policies.
This gives employees greater motivation since they have greater empowerment. Subordinates actively participate in this process.
Management by objectives MBO has been defined by Weihrich and Koontz; The comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed toward the effective and efficient achievement of organizational and individual objectives.
This approach increases the involvement and commitment of the objectives.
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