December 19, 2023

Management By Objectives (MBO) And Its Features

Introduction And Meaning Of Management By Objectives (MBO)


MBO (Management By Objectives) refers to a management practice to improve the efficiency and performance of an organization. It is a process of setting goals and objectives of an organization and  encouraging superiors and subordinates work together to obtain the goal. It promotes joint effort (management and employees) to achieve the predetermined goals and objectives.


MBO Process Involves The Following Steps


1. Defining clear organizational goals and objectives

2. Defining employees objectives

3. Properly monitoring performance and motivating employees

4. Evaluating the performance and providing feedback

5. Providing Rewards


Therefore, MBO is a management technique of integrating organizational activities in order to obtain goals.


Features Of Management By Objectives (MBO)


The main characteristics of features of MBO can be described as follows:


1. Result Oriented Process


MBO is a result oriented process. So, there must be a specific and well defined goal or objective.


2. Collaboration And Teamwork


Collaboration, teamwork and contribution of all members (managers and subordinates) require to achieve a common goal.


3. Dynamic And Flexible Process


Dynamism is another key feature of MBO. It can be applied to every levels of organization. Because of the flexibility, it can be practiced in any type of organization.


4. Operational 


It is operational in nature because it is action oriented process. It gives focus on activities and  performance of the members of an organization.

features-of-mbo


5. Continuous Process


It is continuous or never ending process. Next cycle begins immediately after the completion of one.


6. Proper Use Of Resources


MBO should ensure optimization of available resources in order to increase the efficiency so that the goal can be achieved easily.


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Advantages and disadvantages of MBO


7. Review And Performance Appraisal


Periodic review of performance is another feature of MBO. It helps to identify the weakness, so proper instruction and guidance can be provided to improve the performance of employees.


8. Support And Motivation


Subordinates should get proper support from their superiors. It helps to increase motivation that leads to improve efficiency and performance.