Management by objective

MANAGEMENT BY OBJECTIVE (MBO)
Management by objective was introduced by peter drucker in the early 1950s. The plan provided both a plan and control over the activities of individuals.It is a planning and management technique whereby a superior and his surbodinate set a mutually agreed-upon goal for the surbodinate to achieve within a give period of time at the end of which the surbodinate's performance is appraised. It is a processing which a manager and his surbodinates jointly establish goals and both periodically evaluate performance to know the surbodinates performance towards the realization of the set goals. In it, the surbodinates are given discretion in choosing the means of implementation.


The steps involved:
1. The manager explains the rationale and methodology of Mbo to surbodinates
2. The manager and surbodinates meet to set objectives for the next planning period
3. Some intermediate performance reviews are conducted to determine the progress of the individuals towards the established goals.
4. A final review is conducted at the end of the specified period



The specific objectives are established for individuals in prior to an operating period .

Some of the advantages of management by objective includes:
1 better managing: it makes way for effective planning as managers set out aimed goals and objectives and then prepare a plan to accomplish it.


2.Good  motivator:it is a form of participative management,and the workers and employees feel motivated,as they are seen as the part of a team.

3. provision of more objective appraised criteria


4. provision of clear standard of control:it helps in developing effective controls,just as it helps in developing effective planning.

5.It makes managers know their expected duties

6. It facilitates communication

7.  Effort is focused on organizational goals

8. It encourages participative management

9. It helps to minimize errors

10. It helps to correct underemployment of human resources.

11. It allows individuals to appreciate their performance

12. It increases organization and employee's productivity

13. It helps in personnel development

14. It minimizes row conflict in the organization.

15. It helps to develop effective control

16. It allows logical ordering of priorities.


Disadvantages of MBO.
1. It takes considerable time.
2. It may be resented by surbodinates
3. It may require organization changes in order to become fully effective.
4. Conditions change too frequently for MBO to work
5. Goals are difficult to set.
6. As it involves a lot of multi-stage meetings and agreements, it can generate unnecessary paperwork.
7. It requires constant review and feedback
8. Time and money might be wasted in identifying measurable goals as the cost of measurement may not be justified by the benefit.