What is Management by Objective?

Management by Objective (MBO) is a management system that uses specific, measurable goals to guide and coordinate the efforts of individuals and departments. This approach involves managers and employees working together to develop objectives that are specific, measurable, attainable, relevant, and time-bound. Once these objectives are set, employees are held accountable for achieving them. MBO helps to ensure that everyone in the organization is working towards the same goals and that everyone is clear about their expectations.

What are the advantages of Management by Objectives (MBO)?

Advantages of Management by Objectives (MBO) include:

  1. Increased focus on goals: MBO helps to ensure that everyone in the organization is working towards the same goals, which can increase productivity and efficiency.
  2. Improved communication: MBO encourages open communication between managers and employees, which can lead to better understanding of expectations and improved relationships.
  3. Increased accountability: MBO holds employees accountable for achieving specific, measurable goals, which can lead to increased motivation and a sense of ownership.
  4. Better decision making: MBO helps managers and employees to make decisions based on clear, measurable goals, which can lead to better outcomes.
  5. Improved performance: MBO can lead to improved performance as employees are more aware of what is expected of them and are held accountable for achieving specific goals.
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What are the disadvantages of Management by Objectives (MBO)?

Disadvantages of Management by Objectives (MBO include:

  1. Time-consuming: Developing specific, measurable goals and objectives can be time-consuming and may take away from other important tasks.
  2. Rigid structure: MBO can be a rigid structure that may not allow for flexibility and creativity.
  3. Limited focus: MBO can lead to a focus on short-term goals at the expense of long-term strategic planning.
  4. Potential for conflict: MBO can lead to conflict between managers and employees if goals are not achievable or are not perceived as being fair.
  5. Limited adaptability: MBO may not be adaptable to changing circumstances and may be difficult to modify.