Benefits of Mbo
Running head: BENEFITS OF MANAGEMENT BY OBJECTIVES
Benefits of Management by Objectives (MBO)
Nicole I. Claro
Grantham University
Abstract
In this research paper, I will explain Management by Objectives (MBO) as it has been developed and adapted throughout the years, but based on the works and theories of Peter Drucker, the inventor of MBO. I will also discuss in some depth, 5 benefits that come from implementing MBO within an organization. The MBO process has 4 major activities that must occur in order to be successfully achieved within an organization. These activities are to 1st set goals, 2nd develop an action plan, 3rd review progress and 4th appraise overall performance. The paper will explain why these steps are important in the achievement of MBO in an organization. In explaining the activities needed to achieve MBO I will also be explaining S.M.A.R.T. goals. S.M.A.R.T is a helpful method to help someone remember the steps needed to walk through the process of setting objectives. In conclusion I will have explained MBO and the key components that make up MBO along with showing examples of benefits of utilizing MBO within an organization.
Benefits of Management by Objectives (MBO)
Management by Objectives (MBO) is a systematic approach that focuses on specific goals set for an organization. These objectives are decided and agreed upon between all players within the organization, both management and employees. By doing this, it allows the employees to be fully aware of the organization’s goals and to understand what is expected of them individually. This is to encourage the employee to set their own personal goals and by doing so, they are helping to achieve the organization’s objectives. The MBO approach has been deemed by many to have originated in the book ‘The Practice of Management’ written by Peter Drucker in 1954 (Kotelnikov, 2011). MBO is an extremely popular way to manage an organization and is still widely
Benefits of Management by Objectives (MBO)
Nicole I. Claro
Grantham University
Abstract
In this research paper, I will explain Management by Objectives (MBO) as it has been developed and adapted throughout the years, but based on the works and theories of Peter Drucker, the inventor of MBO. I will also discuss in some depth, 5 benefits that come from implementing MBO within an organization. The MBO process has 4 major activities that must occur in order to be successfully achieved within an organization. These activities are to 1st set goals, 2nd develop an action plan, 3rd review progress and 4th appraise overall performance. The paper will explain why these steps are important in the achievement of MBO in an organization. In explaining the activities needed to achieve MBO I will also be explaining S.M.A.R.T. goals. S.M.A.R.T is a helpful method to help someone remember the steps needed to walk through the process of setting objectives. In conclusion I will have explained MBO and the key components that make up MBO along with showing examples of benefits of utilizing MBO within an organization.
Benefits of Management by Objectives (MBO)
Management by Objectives (MBO) is a systematic approach that focuses on specific goals set for an organization. These objectives are decided and agreed upon between all players within the organization, both management and employees. By doing this, it allows the employees to be fully aware of the organization’s goals and to understand what is expected of them individually. This is to encourage the employee to set their own personal goals and by doing so, they are helping to achieve the organization’s objectives. The MBO approach has been deemed by many to have originated in the book ‘The Practice of Management’ written by Peter Drucker in 1954 (Kotelnikov, 2011). MBO is an extremely popular way to manage an organization and is still widely
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