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Objectives
Objectives may be defined as final result of an
organization tries to achieve in a specific time
period. Moreover, the objectives are a future oriented
and results in state of affairs. It helps in providing to
make an organization in its attention and effort, basically
focused on a certain way.
Advantages of objectives
1. An objective defines the purpose of an organisation
2. It helps in planning
3. It helps in decision making
4. It helps in co-ordination
5. It helps in motivation
Management By Objectives [MBO]
Introduction
The first original work on MBO can be found in Peter Drucker’s book, The Practice of
Management, published in 1954.
MBO is a process which ideally begins at the top of the organization with the
establishment of specific organizational objectives.
Then, at second level of the organization, managers working with their bosses,
establish objectives for their departments that are consistent with the organization’s
objectives.
This procedure is repeated down to the lowest level managers in the organization.
The value of MBO is that it communicates the mission, goals and objectives of the
organization to the lower levels.
The lower level managers work out their plans and targets in consultation with their
subordinates.
These are then sent to higher levels for consideration.
MBO, thus, allows employees to participate in planning and control of their own work
This involvement of employees increases their motivation and commitment to their
work.
Management By Objectives [MBO]
Meaning
Management by objectives (MBO) is a strategic management model that aims
to improve the performance of an organization by clearly defining objectives
that are agreed to by both management and employees.
MBO is a method whereby managers and employees define goals for every
department, project, and person and use them to monitor subsequent
performance.
It helps to improve communication between employee and management,
increase employee understanding of company goals, focus employee efforts
upon organisational objectives and provide link between pay and performance.
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