It has been moot point of discussion that there is gap between Management Theory & Practice,to bridge the gap on this we at MBARendezvous.com – India’s content lead MBA Website, have stared series of articles on The Practices of Management.
Today you will read "Management By Objectives" :
Peter F. Drucker, Management Guru enunciated term of Management By Objectives (MBO) way back in 1954 in his book 'The Practice of Management'.
MBO is a set process which elaborates and defines goals to be achieved by both Management and Employees together in an Organization.
The key factors of MBO is participation for goal setting thereby setting decision making process for taking actions.
Principle of MBO is for the team to have a clear understanding of the roles and responsibilities expected out of them. MBO also places importance on fulfilling the personal goals of each team member.
Few of the salient features and advantages of MBO are:
•Getting focused on achieving set goals
•Entire process gives delegation and work empowerment thus creates immense motivation which precipitates in job satisfaction and commitment
•Interaction and communication process within the team creates better coordination and understanding that itself solves many a problems
•Team can be further divided into sub sets of teams and they feel to achieve higher goals themselves and they never feel that somebody has imposed work on them
•Top of all both managers and subordinates within the team can ensure that they are heading towards achieving common goal of the Organization and they can be of any department like Production, Marketing & Sales, R&D, HR etc.
MBO approach should be carefully followed and must be blended with culture and ethos of the organization. MBO approach further evolves discussions within the teams as this also leads to advantageous position of the organization. MBO approach has led to the performance measurement within the organizations.
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