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Sep 2, 2011

Management by Objectives (MBO ) and Benefits of MBO

Management by Objectives (MBO) has become a popular slogan. There is a mentality that takes the basic high-performance manager, the task of corporate governance. The concept of management by objectives was coined by Peter Drucker in 1954. He expressed the concept of management by objectives, and then emphasized it is developed as a management philosophy. Some authors have used the term interchangeably with a results-oriented management by objectives management.

Management by objectives is a comprehensive management philosophy that focuses on the goals and the final results. Management by objectives based on the assumption that the people better if they know what is expected of them and can put their personal goals with organizational goals refer to. It also assumes that making people better if they expect what they know and can put their personal goals with organizational goals. It also assumes that people are interested in the objective settlement process and evaluate their performance against the target.
Some important definitions of MBO can be specified as follows:

George S. Odiorne.
The system of management by objectives can be used as process through which managers and subordinates to define the organization to share their common goals each area a great responsibility in relation to the expected results are described by him, and with these measures as guidelines for the operation to evaluate the device and the contribution of each member.

Peter Drucker.
He says that management by objectives and self-control is a management philosophy. Based on a concept of human action. Human behavior and motivation. MBO is for any manager at all levels and for all companies, whether large or small. He says that management by objectives, performance guarantees by transforming the objective needs as personal objectives.

Heinz Weihrich and Harold Knoontz.
MBO is a complete management system that a number of key management activities in a systematic way, which is directed deliberately at the effective and efficient organizational and individual objectives integrated.

Stress balance on the objectives. MBO forces managers with the goals of load balancing set of key areas. Terms of crises will be avoided to take place in the organization.


Better management. MBO forces managers to plan for the results and think not only for planning activities or work. Managers are required to ensure that objectives are realistic and necessary resources are made available to subordinates to achieve goals. Clearly, setting goals for his subordinates to serve as standards for evaluation, and the reasons for them. Sun MBO to improved administration.

Better organized. Positions in the company can be built around the key result areas. Managers are required to clarify roles and organizational structures. Therefore, to better organize.

Increase employee involvement and commitment. When the MBO program is installed in an organization, people will not only work, following the instructions and wait for the leadership and shape the decisions and things are not dictated by their superiors. They are now people with clearly defined objectives that were identified by their own participation in the formal process.


Orderly growth of the organization. MOB provides for the maintenance and the orderly growth of the organization defined set of goals for everyone involved. It also provides the measure of what is actually achieved. Progress and even the office of management by objectives, emphasizes the ability, competence and success of managers, rather than their personality. The orderly growth and development of the organization is assured.

Development of effective controls. MBO not only sharpens the planning, but also the development of effective controls. It is stated explicitly checked regularly and annual performance appraisals, as the necessary feedback for streamlining goals or objectives. It allows a manager's own performance, deg4ree high self-control that is a strong motivation to manage.

Creating an ideal atmosphere. Doughlas McGregor says, motivation, who are the potential for capacity development of responsibility, the will to direct behavior toward organizational goals present in all people. Management did not, there is. The essential task of management is to organize the conditions of organization and working methods.

Objective assessment.Management by objectives provides a basis for evaluating the performance of a subordinate, because the goals (standards) are set jointly with the supervisor and subordinates.

1 comment:

  1. Magnificent website. Lots of useful info here. I am sending it to a few buddies ans also sharing in delicious. And of course, thanks on your effort!

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