Objectives of Management by Objectives (MBO)
The objectives of Management by Objective are:
- To aid employees in realizing their responsibilities at work. Each employee has key result areas customized to their interest, areas of expertise, and academic background. The staff members are aware of what is required of them because of MBO.
- To make employees feel valuable in the organization. Every employee plays a unique role in helping the company achieve its goals and objectives. Each employee plays a different role at work. Each person eventually begins to feel devoted to the group and feels valuable in the organization. They typically stay with the company for a longer period and provide significant contributions.
- To guarantee the effectiveness among employees. It fosters an encouraging atmosphere at work, allowing people to appreciate their jobs rather than viewing them as an obligation. Employees who use the MBO process are extremely enthusiastic and dedicated.
- To produce clearly specified hierarchies. It guarantees open-mindedness on all fronts. The Managing Director is not approachable directly by any superior in any company. First, he or she would communicate with their reporting boss, who would then convey the information to the senior, and so on. Each person understands where they fit within the company.
- To set a benchmark for every employee. For each member of the team, the managers establish different organizational and personal goals. Detailed job lists are provided to each employee. Eventually, it eliminates unnecessary complications and works incompatibility.
- To serve as a device for organizational control and integration.
- To serve as a basis for judgements about salary and promotions.
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