Management by Objective (MBO)

Management by Objective (MBO)

Management by Objectives, which is also known as MBO, which involves a mutual understanding of the supervisors and the employees. In MBO, the supervisors and the employees are set goals bilaterally with the mutually understanding of each other for the sake of the organization. This technique is generally occurring twice in a year, “One at the beginning of the fiscal year, then at the end of the budget year”. In the beginning understanding, supervisors and subordinate agrees upon the subordinate’s targets of performance, while in the end they meet again to compare the targets with results.

There are three steps included in the practice of management by objective performance appraisal, let’s see each of them in a bullet form.

• Common goals for the entire organization taken into consideration while setting the goals among the subordinate and supervisors.
• When the time arrives to compare the performance of the year as a whole, then the managers wants from each employee to write a brief statement of their own performance and also include such points, where the organization lacked.
• If the manager or subordinates feel any lacking in the method which may intervene the net result then either manager or employee has the right to take a counter action or abrogate any proposal.

 MBO technique is quite familiar within the organization and it is commonly used in the current scenarios because of its wonderful attributes. MBO, not only revolves around individuals improving his pr her performance but it also help out the whole organization to directed or adequately driven the employees towards achievement of organizational goals. The best part of the MBO technique is that, it includes the involvement of the employees which is really an integral tool to boost up the moral among the employees. Rational remedy and judgment for any arising problem in the premises of the organization become relatively easy if both the supervisor and the employees work together to solve out the problem. A small sort of beam of disadvantage has also seen while implementing the MBO technique on the performance appraisal which is that, the technique is merely emphasized on results and the main concerned is that exactly how a goal will be achieved, which sometimes over burden the work pressure on the employees as well as on the subordinates, which leaves an adverse effect on their health. Abundance of paper work usage is also a disadvantage of the MBO technique, which are in the light of research and soon be mitigating accordingly. MBO system will change people’s performance if it is sturdily supported by the senior management and immediate managers.