abhishreshthaa
Abhijeet S
Management By Objectives (MBO):
This method attempts to minimize external controls and emphasizes on the motivation levels of the employees. The objective of the MBO is to change the behavior and attitude in respect of getting the results. It is a result oriented system. The system emphasizes on goal achievements rather than the method involved.
MBO Process
a. The organizational goals are first set. They are clearly stated in measurable targets. They have to be realistic and achievable, although challenging.
b. The goal setting process is a joint process. The short-term performance goals are set jointly by the employees and their superiors.
c. There are frequent reviews of performance through one to one meeting.
d. Sharing of feedback in such meeting helps in altering the course of action, if required.
It is, therefore, a process which sets goals, exchanges feedback and seeks participation of employees.
Advantages of MBO
i. It involves participative approach in goal setting.
ii. It enhances the motivational levels of the employees.
iii. It provides objective appraisal method.
iv. It is an effective tool for identifying the training and development needs.
Disadvantages of MBO
i. It is a system which concentrates on results and not on the process.
ii. It may lead to unhealthy competition amongst the employees.
iii. It may create a conflict situation when it comes to goal setting.
iv. Sometimes, very soft targets are set to show higher performance achievements.
This method attempts to minimize external controls and emphasizes on the motivation levels of the employees. The objective of the MBO is to change the behavior and attitude in respect of getting the results. It is a result oriented system. The system emphasizes on goal achievements rather than the method involved.
MBO Process
a. The organizational goals are first set. They are clearly stated in measurable targets. They have to be realistic and achievable, although challenging.
b. The goal setting process is a joint process. The short-term performance goals are set jointly by the employees and their superiors.
c. There are frequent reviews of performance through one to one meeting.
d. Sharing of feedback in such meeting helps in altering the course of action, if required.
It is, therefore, a process which sets goals, exchanges feedback and seeks participation of employees.
Advantages of MBO
i. It involves participative approach in goal setting.
ii. It enhances the motivational levels of the employees.
iii. It provides objective appraisal method.
iv. It is an effective tool for identifying the training and development needs.
Disadvantages of MBO
i. It is a system which concentrates on results and not on the process.
ii. It may lead to unhealthy competition amongst the employees.
iii. It may create a conflict situation when it comes to goal setting.
iv. Sometimes, very soft targets are set to show higher performance achievements.