Management by Objectives (MBO) is a good management technique because it can be used in almost any environment. Both small and large organizations can benefit from applying MBO to their day to day operations. Although certain criterion has to be met, the criterion is nothing drastic that it cannot be applied as needed to different work conditions.
MBO can be used to great advantage because it promotes many things such as relationship building, self-management, motivation and enthusiasm for one's work as well as better organization, a clear set of objectives and how to go about accomplishing them, as well as how to measure them to ensure that goals are being met. All of which are extremely important in any organization.
Furthermore, MBO is an excellent way of integrating planning and controlling with clear organization and still satisfy all aspects of each process respectively. Objectives are clearly defined and assigned priority, ensuring that the right tasks get done first and on time. A plan to achieve these objectives is agreed upon; further assuring timeliness as well as quality.
Throughout this process, supervisor and subordinate jointly agree upon objectives and plans for achieving these objectives. This is especially important because it promotes relationship building. Not only that, but MBO requires that plans made are agreed upon by both, supervisor and subordinate, and not just the supervisor.
I feel that this aspect of MBO may very well be the most important because it puts management in a supportive position and also since ultimately it is the employee who will be completing each task, it is important to get that input in order to set realistic yet challenging objectives.
Furthermore, this process lets the subordinate actualize more self-management; it gives a sense of "this is MY project", providing motivation and enthusiasm for the work to be accomplished yet providing the assurance that management will be supportive to all efforts made to complete the task.
From a management standpoint, I feel that MBO, if applied well, can be very effective and promote greater efficiency because it sets specific objectives and how and when to accomplish them as well as how to measure them. It puts supervisor and subordinate onthe same page, so there are no excuses for late or sloppy work because the objectives have been defined, quantified, and agreed upon. As an added benefit, MBO promotes a better work relationship, through planning, cooperation, understanding, and support, andthat is always welcome in any work setting.
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