MANAGEMENT BY OBJECT (MBO)
Reviewed by adminon Apr 01 2013
Rating:
Reviewed by adminon Apr 01 2013
Rating:
Management by objectives (MBO) is now practiced all over the world. Yet, despite
its wide applications, it is not always clear what is meant by MBO. Some says that it
is an appraisal tool; other sees it is a motivational technique; still others consider
MBO a planning and control device. In other words, definitions and applications of
MBO differ widely. MBO process consists of setting goals at the highest level of the
organization, clarifying the rules of responsible persons for achieving the goals. Some
still define MBO in a very narrow, limited way.
BENEFITS OF MBO
There are four benefits of MBO.
1. MBO IMPRVOES MANAGEMENT:
All the objectives of management by objective can be summarized by saying that it
results in greatly improved Management. objective can not be establish without
planning.MBO force Managers to think about planning for results.MBO also requires
that Managers think about the way from which they will accomplish results. They
will think about need of assistance to achieve the objectives.
2. MBO CLASSIFY ORGANIZATION
MBO classify the organizational roles and structure. It force managers to delegate
authority according to the results they expect.
3. MBO INCOURAGE PERSONAL COMMITMENTS;
One of the great advantages of management by objective is that it encourages people
to commit themselves to their goals. Because of MBO people can understand their
area of discretion, there authority, the part in setting their objectives.
4. MBO DEVLOPES EFFECTVE CONTROL
MBO help people to develop effective control. As MBO guides in setting result
oriented planning. It is also guides people to develop effective control towards the
accomplishment of the goals.
WEAKNESSES OF MANAGEMENT BY OBJECTIVES
With all its advantages, MBO has a number of weaknesses. There are several
weakness of MBO.
1. MBO FALIURE TO EXPLIAN PHILOSPHY MBO
As MBO emphasis self-control and self direction therefore sometimes managers fail
to explain the philosophy of MBO to their subordinates. Managers often fail to
explain about MBO that it is? How it works? Why it is being done? What part in
performance appraisal? How participants can benefits?
2. MBO FAILURE TO GIVE GUIDE LINES FOR GOAL SETTING
One of the weaknesses of MBO is that it fails to give guide line for goal setting to
managers. Managers need planning premises and knowledge of major company
polices. People must have some assumptions about future. They should have some
understanding about objectives affecting their areas of operations. They should know
about objectives and programes.MBO fails to give guideline to Managers.
3. DIFFICULTY OF SETING GOALS
Truly verifiable are difficult to set. MBO difficult and verifiable goals.
4. EMPHASIS ON SHORT TIMES GOALS
In most MBO programs, managers set goals for the short term for yearly or quarterly.
Emphasis on short term goals lead to danger more expensiveness as of the longer
range.
5. DANGER OF INFLAXIBILITY
In MBO program managers often hesitate to change objectives. Change in objective
can affect results. So in MBO managers often hesitate to know flexibility.
OTHER WEAKNESSES
There are some other dangers and difficulties in MBO.
1- There may be a danger of overuse of quantitative goals or low gradation of
important goals.
2- Difficulty in applying goal oriented planning.
3- Difficulty of converting broad objective into subordinate objectives.
4- Difficulty in measuring performance.
5- Difficulty in providing feedback.
6- Difficulty in setting long-range objectives and planning.
7- Difficulty in adjusting to the fast changing environment
