What is Management by Objectives (MBO)? What are its advantages and disadvantages?

Introduction

The use of focal point objectives was first widely advocated in the mid-fifties by the noted management theorist Peter Drucker. MBO (management by objectives) methods of performance appraisal are results-oriented seeks to measure employee performance be examining the extent to which predetermined work objectives have been met.

Usually the objectives are constituted jointly by the supervisor and subordinate. An example of an objective for a sales manager might be: Increase the primitive monthly sales volume to $250,000 by 30 June. at a time an objective is agreed, the employee is usually expected to self-audit; that is, to detect the skills needed to obtain the objective. Typically they do not rely on others to subside and specify their strengths and weaknesses. They are expected to monitor their own tuition and progress.

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What is MBO?

Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best realistic results from available resources. It aims to increase organizational performance by positioning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the parade to reach objectives.

MBO Principles

- Cascading of organizational goals and objectives

- Specific objectives for each member

- Participative decision making

- transparent time period

- Performance evaluation and feedback

The objectives must be:

- cerebrate on a result, not an activity

- Consistent

- Specific

- Measurable

- Related to time

- Attainable

MBO Strategy: trio Basics

- All individuals within an organization are assigned a special set of objectives that they try to reach during a modal(prenominal) operating period. These objectives are mutually set and agreed upon by individuals and their managers.

- Performance reviews are conducted periodically to...

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