Management by Objectives (MBO)|articlecg

  Management by Objectives(MBO)

Management by objectives (MBO)  is called 'goal management' or 'by results'.

It is known as 'Management by Results. Allen has addressed it in the name of 'end result' while Kuntz and O'Donnell called it the endpoint of the management program. The basic premise of this method is that under this tasks are assigned at different levels of management and then these tasks are directed to fulfill the objectives of the business. He also needs to know about the contribution of his subordinates to achieve these objectives. Not only this, everyone should have knowledge of how much contribution can be made by himself and his own unit and how much contribution can be made from other units. If seen, there is a practical aspect of management by objectives. Under this, the organized strategy is prepared on the basis of the objectives of the business. Based on the strategy, the pre-plan is divided into different departments. After this periodic evaluation and review are done.

Characteristics of Management by Objectives(MBO)

Following are the main features of Management by Objectives

1. Desired Objectives or Results 

 Objectives under management determine the objectives of both the organization and the employees and their detailed definition is given.

2. Performance Standard 

 In this, the performance level of each manager is determined in such a way that it is helpful in fulfilling the basic objectives of the organization.

3. Performance Appraisal 

 In this, the performance of each manager is evaluated with reference to the goals set for him.

4. Organization Structure 

 Under this, the structure of the organization is prepared in such a way that every manager is free to take his own decisions. Not only this, he is also completely free to change his decisions according to the time and circumstances.

5. Control Information 

 Control information should reach every manager at the right time and at the right time, so that he keeps on trying to improve his decisions. For this, it is necessary to have a system of healthy messaging.

6. Functional Objectives 

 In this, the functional objectives are related to the objectives of the organization. It is seen in this that wherever the objectives of the organization get weak or it is not possible to give functional form, then necessary amendments should be made to the objectives.

7. Team Spirit

 It emphasizes on cooperation, cooperative effort and team spirit. It facilitates coordination by bridging the gap between employee expectations and managerial practices.

8. Motivation 

In this, there is a provision to give both monetary and non-monetary motivation to the employees, so that the manager is motivated to take the right decision and implement it properly at the right time.

Management by Objectives (MBO)
Management by Objectives (MBO)

Benefits of Management by Objectives(MBO )

 1. Efficient Performance 

 By using this method, managerial performance improves. All their actions are based on objectives.

2. Profitable Activities 

 By implementing management by objectives, the activities of the organization and the managers are focused only on profitable activities.

3. High Morale 

 The management method through objectives raises the morale of the managers and creates understanding in them about the objectives.

4. Good Delegation 

 Through this, the way of delegation or dedication becomes paved and best.

5. Coordination 

 Coordination is an element of management. The task of coordination in the management method is done voluntarily by objectives.

6. Effective Managerial Development:

 This encourages effective managerial development, due to which the level of managerial competence becomes high.

7. Good Communication 

 Management method by objectives makes the communication system in the organization the best.

8. Motivation

 Managers get motivation as a result of their involvement in setting objectives. Inspiration is the real motivation.

9. Clarity in the organization 

 With the pre-determining of objectives, each manager and subordinate gets a clear knowledge of their officers, duties, and responsibilities, due to which enough confusion and conflict in the organization gets rid of.

10. Decentralization 

 This paves the way for decentralization and the benefits arising out of it are received by the organization.

11. Participation in decision making 

The basic objective of the management method by objectives is to increase the participation of subordinates in decision-making.

12. Controlling 

 Under the method of management by objectives, the actual performance is compared with the predetermined objectives, as a result of which the work of control becomes easy. Management by objectives gives more importance to self-control than to external control. According to Drucker, “Self-control is an essential part of management philosophy by objectives. ,

Criticisms of Management by Objectives (MBO)

The following are the criticisms, limitations or shortcomings of management by objectives:

1. Unable to Motivate

 Individuals In the words of Harry Levinson, “The technique of management by purpose is a great managerial net (maya) because it fails to motivate individuals.” According to him, this method has not been able to inspire the inner feelings of the individuals because in it there is pressure on the individuals and they have a limited area of ​​choice of objectives.

2. Pressure Oriented and Time-Consuming Technique

Rensis Likert has criticized it in the following harsh words, “The philosophy of Management by Objectives is pressure-oriented but time-consuming.” -consuming) method." This can lead to an immediate increase in production but does not increase productivity. According to him, the increase in productivity is the result of strong human relations and a leadership system.

3. The need for change in the distribution of effects 

 Henry L. Toshi (Henry L. Tosi) and Stephen J. According to Carroll (Stephen J. Carroll), “The distribution of influence in management by objectives requires a change. If the managerial personality and the structure of the organization are unable to distribute this effect, dissatisfaction with the objectives increases. "

, 4 Training Needed

 M.B. O. Techniques emphasize on the participation of employees in the determination of objectives and decision making, but in practice it has been seen that due to the participation of employees, conflicts arise in place of cooperation because both subordinates and officers determine different goals. We do. For this reason George S. Ordiorne has suggested that "MBO can be successful only when superiors are trained in setting goals with subordinates." He has described 20 common errors in goal setting in this regard.

5. M. B. O. Challenging the recognition of 

Dr. N. Of. Sethi has challenged the basic assumption of management by objectives. According to him the organizational environment is changing very fast and fast all over the world. In such a situation, the principles of this ideology cannot be used in the true sense for a long time. Therefore, he has suggested that instead of objectives and management, the technique of Management by Action should be applied.


6. Difficulty in setting and expressing objectives

zones. According to M. Ivancevich, some researchers have given negative characteristics about management techniques by motives. He says that some persons who take part in the setting of objectives initially come forward for some time but they soon give up the power of appeal and motive. Not only this, a study in this regard has also revealed that some managers complain that it is very difficult to express its specific objectives in the form of a unit.

Tips for making management effective through objectives (mbo )

(I) Objective suggestions

(1) Objectives should be simple and clearly defined.

(2) Objectives must be realistic and attainable.

(3) While setting the objective, the desired time should also be fixed simultaneously.

 (4) Determination of objectives should be done through joint consultation between subordinates and officers.

 (5) Objectives should be appropriate in the eyes of subordinates, which should be possible to be achieved by the means available within the stipulated period.

(6) Objectives should be determined in the context of the prevailing circumstances and after making an adequate study of them.

 (7) Objectives should be properly communicated and understood by each member of the organization.

Should be well informed about them.

(8) These should be used as performance levels.

(9) These objectives should be motivational.

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