Management By Objectives :: Business Management Studies

prudence By ObjectivesMBO Principles* Cascading of organizational goals and objectives.* Specific objectives for each member.* Participative decision making.* Explicit meter period.* performance military rating and feedback.Types of objectives* Routine objectives.* Innovation objectives.* Improvement objectives.The objective essential beo Focused on a result, not an activity.o Consistent.o Specific.o Measurable.o Related to time.o Attainable.MBO strategy has collar basic parts1. All individuals within an organization are charge a special strict of objectives that they try to reach during a frequent operating period. These objectives are mutually set and agreed upon by individuals and their managers.2. Performance reviews are conducted periodically to determine how close individuals are to attaining their objectives.3. Rewards are precondition to individuals on the basis of how close they come to reaching their goals.MBO has six stages1. square up corporate objectiv es at broad level.2. Analyze charge tasks and devise black-tie job specifications, which allocate responsibilities and decisions to individual managers.3. Set performance standards.4. Agree and set specific objectives.5. Align individual targets with corporate objectives.6. Establish a management information system to monitor achievements against objectives.The 8 key result areas where managers must(prenominal) pursue clear objectivesare Marketing. Innovation. Human organization. Financial resources. Physical resources. Productivity. affable responsibility. Profit requirement.MBO Key Advantages and DisadvantagesAdvantageso MBO programs continually emphasize what should be through with(p) in an organization to achieve organizational goals.o MBO process secures employee freight to attaining organizational goals.Disadvantageso The development of objectives can be time consuming, loss both managers and employees less time in which to do their actual work.o The elaborate w ritten goals, careful communication of goals, and detailed performance evaluation required in an MBO program increase the volume of paperwork in an organization.Managing for Results The 8 Perceptions Resources and results exist outside, not inside, the business.