MBO (MANAGEMENT BY OBJECTIVE) MBO IS THE APPROACH BY WHICH BOTH EMPLOYEES AND SUPERIOR JOINTLY SET PERFORMANCE GOALS

AND DUTIES. HAVING PARTICIPATED IN THE FIXATION OF HIS OWN GOALS, THE EMPLOYEE BECOMES MORE INVOLVED TO TIME DUTIFUL TO AND THE ACTIVE GOALS IN IN PERFORMANCE. PLANNED TIME. MBO IT FACILITATESEMPLOYEES TO ADJUST THEIR TIME SCHEDULES FROM TIME ATTAIN HELPSEMPLOYEES UNDERSTAND OBJECTIVES AND DUTIES CLEARLY.

MBO HAS THREE ELEMENTS 1. MANAGERS (SUBORDINATE MANGER) SHOULD BE MEASURED WHAT THEY ACCOMPLISH RATHER THAN HOW THEY SPEND THEIR TIME. 2. MANAGER MUST BE WELL INFORMED OF THEIR OBJECTIVES. MANAGER OBJECTIVES ARE THEIR DUTIES THAT THEY MUST PERFORM. 3.MANAGER AND THEIR SUBORDINATES SHOULD JOINTLY SET PERFORMANCE OBJECTIVES.

PROCESS OF MBO

THE PROCESS STARTS AT THE TOP OF AN ORGANIZATION AND HAS THE ACTIVE SUPPORT OF THE CHIEF EXECUTIVE WHO GIVE DIRECTION TO THE ORGANIZATION IT IS NOT ESSENTIAL THAT OBJECTIVE SETTING START T THE TOP HOWEVER IT CAN START AT THE DIVISION LEVEL AT THE MARKETING MANAGER LEVEL OR EVEN LOWER E.G IN ONE COMPANY THE SYSTEM WAS FIRSTSTARTED IN A DIVISION WHERE IT WAS CARRIED DOWN TO THE LOWEST LEVEL OF SUPERVISION WITH AN INTERLOCKING NETWORKING NETWORK OF GOALS. AS IN ALL OTHER KINDS OF PLANNING ONE OF THE CRITICAL NEEDS IN MBO IS THE DEVELOPMENT AND DISSEMINATION OF CONSISTENT PLANNING PREMISES NO MANAGER

CAN BE EXPECTED TO SET GOALS OR ESTABLISH BUDGETS WITHOUT GUIDELINES.

ADVANTAGES OF MBO 1.ORGANIZATION IS CLEARLY DEFINED IN SETTING MBO ORGANIZATION ROLES AND STRUCTURE HAVE TO BE CLEARLY DEFINED. CLEARLY DEFINED AUTHORITY IS DELEGATED KEY CLEARLY DEFINED 2. BETTER MANAGEMENT THE QUALITY OF MANAGEMENT IS IMPROVED BECAUSE MBO FOCUSES ITS ATTENTION IN PLANNING, ORGANIZATION AND CONTROLLING 3. PERSONNEL COMMITMENT THE SUBORDINATE MANAGER IS COMMITTED DUTIFUL AND ACTIVE IN PERFORMANCE . HE HAS HIGH MORALE 4. EFFECTIVE CONTROL MANAGERS ARE SELF DIRECTED AND CONTROLLED.

Unfavorable attitude of Managers.

Some manager have an attitude that the regular attenuation required of them By MBO System, draws heavily on their busy time schedule and is not consistent with their roles.

Problems about Goals Setting. MBO requires issuance of proper , exhaustive guidelines to goal setters The following are difficulties in goals setting: i. Positive and active participation from subordinates is not easily forth forthcoming. Truly verifiable goals are bot easy to formalise

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Emphasis is put in short-range goals, whereas long-range goals are avoided, tough long-range goals are vital for growth and development of the organization Goals remain inflexible and rigid. For example, changes desirable in annual budgets are not easily accepted in the middle of the year. Over-use of quantitative goals jeopardizes the qualitative aspect which may more important than quantification in some cases. Goals tend to take orecedebce or priority over the people who use them. Any action is acceptable of it series in the attainment of Gilas, without caring for its impact on people. Thus, all these difficulties come in the way of making management by objectives operational in an organisation. Further, managing involves more than goal setting. Time-consuming nature of management by objectives. Management by objectives system is time-consuming especially in the early phases of its introduction when employees are unfamiliar with its process.

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