Advantages of Management by Objectives (MBO)
The following are the certain advantages regarding Management by Objectives (MBO):
- More Clarity towards Objectives: MBO aids in defining organizational structures and responsibilities. According to the demands of the job given, authority and responsibility are allocated. Setting objectives without giving the necessary people the necessary power is useless. The organizational roles should be designed around the primary outcomes predicted by those holding them. Adopting Management by Objectives in the organization will help the organization in identifying its shortcomings.
- Better Management: MBO leads to enhanced and superior management. Setting goals for each action and person, and ensuring that they are met, are necessary for better management. In addition to assisting in goal-setting, MBO also makes sure that goals and resources are coordinated. Better and more goal-oriented preparation is required for setting goals. MBO encourages strategic planning as opposed to simply scheduling tasks or activities. Managers will come up with strategies for accomplishing goals. The goals also serve as performance standards and controls.
- Enhanced Individual Commitment: The primary advantage of MBO is that it motivates employees to dedicate themselves to achieving predetermined goals. People typically just complete the tasks that have been given to them. They carry out their job as usual and adhere to the directives of their superior. But in the case of MBO, each individualās goal is well stated and with their own agreement. Individuals in the organization get the chance to present their own thoughts to employers, debate the benefits and drawbacks of different recommendations, and take part in determining the ultimate goals.
- Establishing Controls: MBO system aids in the creation of efficient controls. Setting standards and determining any variations from those standards are necessary steps in establishing controls. Verifiable targets are established in MBO, and overall performance will help in determining any shortcomings in the outcomes. Everyone knows what is required of them, these yardsticks serve as unambiguous checks. In order to achieve control, MBO must be observed.
- Improved Communication: Managers and staff members establish and manage goals collectively, so they get to communicate more frequently to discuss these goalsā progress. This provides employees with more choices to communicate issues or ask queries from managers. Success requires effective communication, which can lead to increased productivity, improved interpersonal relationships, and work satisfaction. It is for this reason that it is said communication is the key.
- Motivation and Morale: Because of MBO interpersonal relations are better as there is involvement and recognition of people at all levels. It provides greater opportunities to make personal contributions and accept more responsibility. Commitment and morale of the employees are high because of participative goal setting and two-way communication.
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