MANAGEMENT BY OBJECTIVE (MBO)

MBO process consists of setting goals at the highest level of the organization, clarifying the rules of responsible persons for achieving the goals.

BENEFITS OF MBO
There are four benefits of MBO. 1. MBO IMPRVOES MANAGEMENT: All the objectives of management by objective can be summarized by saying that it results in greatly improved Management. objective cannot be establish without planning.MBO force Managers to think about planning for results.MBO also requires that Managers think about the way from which they will accomplish results. They will think about need of assistance to achieve the objectives. 2. MBO CLASSIFY ORGANIZATION MBO classify the organizational roles and structure. It force managers to delegate authority according to the results they expect. 3. MBO INCOURAGE PERSONAL COMMITMENTS; One of the great advantages of management by objective is that it encourages people to commit themselves to their goals. Because of MBO people can understand their area of discretion, there authority, the part in setting their objectives. 4. MBO DEVLOPES EFFECTVE CONTROL MBO help people to develop effective control. As MBO guides in setting result oriented planning. It is also guides people to develop effective control towards the accomplishment of the goals.

WEAKNESSES OF MANAGEMENT BY OBJECTIVES

With all its advantages, MBO has a number of weaknesses. There are several weakness of MBO. 1. MBO FALIURE TO EXPLIAN PHILOSPHY MBO As MBO emphasis self-control and self direction therefore sometimes managers fail to explain the philosophy of MBO to their subordinates. Managers often fail to explain about MBO that it is? How it works? Why it is being done? What part in performance appraisal? How participants can benefits? 2. MBO FAILURE TO GIVE GUIDE LINES FOR GOAL SETTING

One of the weaknesses of MBO is that it fails to give guide line for goal setting to managers. Managers need planning premises and knowledge of major company polices. People must have some assumptions about future. They should have some understanding about objectives affecting their areas of operations. They should know about objectives and programes.MBO fails to give guideline to Managers. 3. DIFFICULTY OF SETING GOALS Truly verifiable are difficult to set. MBO difficult and verifiable goals. 4. EMPHASIS ON SHORT TIMES GOALS In most MBO programs, managers set goals for the short term for yearly or quarterly. Emphasis on short term goals lead to danger more expensiveness as of the longer range. 5. DANGER OF INFLAXIBILITY In MBO program managers often hesitate to change objectives. Change in objective can affect results. So in MBO managers often hesitate to know flexibility. OTHER WEAKNESSES There are some other dangers and difficulties in MBO. 1- There may be a danger of overuse of quantitative goals or low gradation of important goals. 2- Difficulty in applying goal oriented planning. 3- Difficulty of converting broad objective into subordinate objectives. 4- Difficulty in measuring performance. 5- Difficulty in providing feedback. 6- Difficulty in setting long-range objectives and planning. `7- Difficulty in adjusting to the fast changing environment