What is management by objectives and its advantages and disadvantages?

Since management by objectives (MBO) is a results-oriented process and focuses on setting and controlling goals, it encourages managers to perform. Money Management 101 for Single Parents Going Solo.

What is management by objectives and its advantages and disadvantages?

Since management by objectives (MBO) is a results-oriented process and focuses on setting and controlling goals, it encourages managers to perform. Money Management 101 for Single Parents Going Solo. MBO invokes goal and goal setting through the active participation of both superiors and subordinates. This mutual goal setting improves the clarity of goals and results in realistic plans that people commit to.

MBO makes objectives clear and specific and planning is directed toward these objectives. Individual members of the organization have a greater sense of identification with the company's objectives. With MBO, subordinates are proud to participate in the organization's objectives. This improves their morale and commitment to organizational objectives.

Because goals are set in consultation with subordinates, they are more difficult to achieve and more challenging than if they were imposed by superiors. In addition, since these objectives are set according to the particular skills of subordinates, it obtains the maximum contribution from them and, therefore, leads to the maximum utilization of human resources. There is no ambiguity or confusion of roles in the organization, because specific and clear objectives are established for the organization, for the division, for the departments and for the individual members. Both managers and subordinates know what to do and what is expected of them.

In MBO, there is better communication between management and subordinates. This continuous two-way communication helps to clarify any ambiguity, refine and modify any process or any aspect of the objectives. It provides a means to identify and plan for the achievement of goals. If you don't know what your goals are, you won't be able to achieve them.

Planning allows for proactive behavior and a disciplined approach to achieving goals. It also allows you to prepare for contingencies and obstacles that may hinder the plan. Objectives are measurable for easy evaluation and adjustment. Organizations can also gain more efficiency, save resources, and increase organizational morale if objectives are set, managed and achieved correctly.

Management by Objectives (MBO) uses a set of quantifiable standards or objectives with which to measure the performance of a company and its employees. By comparing actual productivity to a given set of standards, managers can identify problem areas and improve efficiency. Both management and workers know and agree with these standards and their objectives. Similarly, managers can't properly delegate their subordinates or managers can't motivate their subordinates properly.

Senior managers tend to be critical of the conscience, experience, education and knowledge of their subordinates and, therefore, always maintain their “control” over the situation. When goals cannot be restricted in number, it leads to dark priorities and creates a sense of fear among subordinates. Ultimately, the decision to implement goal-based management depends on the individual leaders of the organization. There may be a need to revise the goal at the lowest levels to achieve the company's long-term objectives.

Management by Objective (MBO) is a management technique that involves the supervised establishment of measurable personal work objectives that align with the overall objectives of the organization. In addition, MBO can cause conflicts between different departments or groups, since each group can have its own set of objectives. They also provide control standards so that managers can ensure that they are moving in the right direction or not. In reality, the business environment is not so stable that the objectives, once set, are maintained until they are achieved.

The first is only possible when there are specific objectives, while the second can only occur if there is a review and reward system in place. MBO is a highly systematic and structured management approach, which means that it involves the efforts of many parties working together at once. Setting goals implies that both the superior and the subordinate have to sit at the table and openly discuss their respective roles, work, obstacles and competencies. An MBO approach to management provides clear objectives and, in turn, helps motivate people involved in the process.

MBO increases interactions and collaboration between management and employees by allowing them to set, record and monitor their own goals, leading to increased employee morale and motivation to achieve the organization's objectives. Interaction between managers results in better ideas and, as a result, there will be better planning and control. Similar to many aspects of organizational security and management systems, regularly monitoring and adjusting processes to keep them running smoothly allows an organization to remain flexible towards change and resilient to potential problems. .


Doug Pelletiu
Doug Pelletiu

Total bacon ninja. Avid travel scholar. Evil bacon advocate. Freelance social media scholar. Devoted beer practitioner. Incurable bacon guru.

Leave a Comment

All fileds with * are required