Management by Objectives - MBO - Benefits of MBO - Edupedia

 

Management by Objectives (MBO):

 The top level management of the organization sets the main objective of the organization to employee through a technique which is named as Management by Objectives (MBO). In MBO the goals and objective of the organization are defined and conveyed to all level of the employees. By this technique everyone in the organization is well known about the goals of the organization and have clear pathway about what to do and how to do. So this might be help full for collaborating and connective with each other for increase in productivity.

Definition:

Management by Objectives (MBO) is a technique of performance evaluation in which the management sets the goals of the employees for a specific time and measure the efficiency of the employees.

 

Management by Objectives (MBO)

            Management by objective is a technique in which employees are usually assigned a specific task to work on it and complete the task. The management of the organization can check off the performance by viewing the effectiveness of the work. But things to be cleared that, the assigned task must be measurable, realistic and achievable.  This is considered as one of most effective methods of performance appraisal. It evaluates the individual performance as well it is economic method of appraisal.

One thing to remember that, in MBO the progress and performance of the employees is evaluate on the base of the objective set already. Usually the employees are involved at the time of setting goals for them to achieve. This type of approach is best suitable for they employees because they feel more responsible so far try their best to achieve those goals. Secondly they are well defined the pathway to get the task to be done.



Benefits of MBOs:

v  Improvement in performance:

v  Sense of identity:

v  Career growth: 

v  More appreciation:

v  Efficiency in Key Result Areas:

v  Team Work:

v  Clear Understanding of goals:

v  Sense of motivation and Loyalty:       

Improvement in performance:

            In this technique there are more chances in improvement in performance because the employee knows about the objectives and tasks which they have to achieve. An employee also feels more responsible because they are present at the place where the goals are being set to them which leads to productivity.

Sense of identity:

             Employees feel more comfortable when they feel that they are more recognized. They also feel proud of it when they are involved at the time of decision making for setting goals to them. Everyone knows well what is their position and importance in the organization.

Career growth: 

            This approach of evaluation of the employees helps them to understand their strengths and weakness. They learn from their failure in better way and become stronger to perform well in future. In result they give more productivity and get more career growth.

More appreciation:

            In this approach every employee and management knows about the task assigned to a specific employee. So, if employee does good work in effective manners he will surely get more appreciations.

 

Efficiency in Key Result Areas:

            In this approach the tasks are assigned to employees by planning according to their qualifications, skills, knowledge, abilities, specialization and interest. So they can achieve the objectives because they have skills accordingly.

 

Team Work:

        The goals and tasks of the every employee are clearly defined and everyone knows what to do and how to do. It will also clear everyone from where to get help in case of need. So there will be collaboration between the employees which will develop supportiveness and team building.    

 

Clear Understanding of goals:

            The basic and fundamental key words in this approach are that everyone knows about the goals and clear about the expectations from them. Every of the employees has to complete unique and may be separate objectives.

 

Sense of motivation and Loyalty:      

            The goals of every employee are unique, so, they get more motivation and become more loyal to the organization by getting that they are being recognized. They are also motivated because they know in result of achievement of goals, there effort will give rewards.

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