Characteristic of MBO Mutual Goal Setting Compatibility Measurable Objectives Systematic Continuity Key Result Area
Objectives of MBO To measure and judge performance To relate individual performance to organizational goal To clarify both the job to be done and the expectations of accomplishments To foster the increasing competence and growth of the subordinates To stimulates subordinates motivation
Elements of MBO
How MBO is used in organisations ? To clarify the employee’s job ( planning & organization) To motivate employees As a performance control mechanism to check performance of employees Directly related to all the major functions of management.
Advantage and Disadvantage of MBO S.No Advantages disadvantages 1 Improved managerial performances Difficulty in Goal setting 2 Concentration towards profit Making Time consuming activities 3 Better delegation More paper work 4 Improved communication Pressure on employees 5 Improved morale and sense of purpose Leadership problems 6 Early recognition of development potential Conflict