Main Characteristics of Mbo and When It Might Not Be an Appropriate Management Tool

Only available on StudyMode
  • Download(s) : 205
  • Published : July 21, 2009
Open Document
Text Preview
Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives. To give a example from my workplace every year before the start of the new financial year there is a complex process of performance review and setting objectives for the next 12 months, this is done in consultation with one’s manager.

The key point in MBO is to make sure that everybody within the organization has a clear understanding of the aims, or objectives, of that organization, as well as awareness of their own roles and responsibilities in achieving those aims. The complete MBO system is to get managers and empowered employees acting to implement and achieve their plans, which automatically achieve those of the organization.

According to http://managementhelp.org/plan_dec/mbo/mbo.htm the MBO aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identifying their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives.

MBO empowerment recognizes "the demise" of the command-and-control system, but remains a term of power and rank. If we analyze the armed forces in a country the MBO system of management is not appropriate as the structure of a military force is of command and control. Individuals cannot have objectives it is the collective objectives that have to be carried out as a military force works as a group and not as individuals.
tracking img