Management:
Management by Objectives is established to measure the level of performance in comparison to the aimed standards. It provides a better environment for both the employer and the employees. It also enhances the efficiency of workers and their communication capability is also polished. The idea of Management by Objectives is quite related to the planning-procedure.
Merits
Motivation:
MBO helps in enhancing the motivation of the employees and increase their work efficiency. Such a positive motivation will help the whole organization to make their ways to a much better future and may achieve the level of excellence.
Clarity of Ambitions:
With the help of MBO, the idea of smart goals comes into the minds of employers and employees. They come to understand and comprehend the goals which are specific, relevant, time saving, achievable, accurate and measurable.
Enhances commitment:
Management by objectives prove a reliable way to commitment of the organization towards their clients and lessen the circumstances which can be undesirable.
Better Coordination:
The frequent review and monitoring sessions adds positivity in the relations of employers and the employees. By lessening the gap between the superiors and juniors due to which they will be able to share their problems regarding work and can cope with the problematic situations.
MBO helps in enhancing the motivation of the employees and increase their work efficiency. Such a positive motivation will help the whole organization to make their ways to a much better future and may achieve the level of excellence.
Clarity of Ambitions:
With the help of MBO, the idea of smart goals comes into the minds of employers and employees. They come to understand and comprehend the goals which are specific, relevant, time saving, achievable, accurate and measurable.
Enhances commitment:
Management by objectives prove a reliable way to commitment of the organization towards their clients and lessen the circumstances which can be undesirable.
Better Coordination:
The frequent review and monitoring sessions adds positivity in the relations of employers and the employees. By lessening the gap between the superiors and juniors due to which they will be able to share their problems regarding work and can cope with the problematic situations.
Demerits
Misapplication of Objectives:
W. Edwards Deming said that due to lack of the knowledge of systems mostly result in the misapplication of aims, objectives and ambitions.
Concept of “Ideal Employee”:
Another drawback of Management by Objectives is that companies compare their employees as Ideal or Perfect ones and praise and appreciation lies in what employees should be, not at what they should do.
Thus it can be concluded that Management by Objectives possess fewer demerits in contrast with a long list of merits and advantages. But MBO should be assigned and planned with keen observation and understanding so that failures and mistakes may be avoided.
W. Edwards Deming said that due to lack of the knowledge of systems mostly result in the misapplication of aims, objectives and ambitions.
Concept of “Ideal Employee”:
Another drawback of Management by Objectives is that companies compare their employees as Ideal or Perfect ones and praise and appreciation lies in what employees should be, not at what they should do.
Thus it can be concluded that Management by Objectives possess fewer demerits in contrast with a long list of merits and advantages. But MBO should be assigned and planned with keen observation and understanding so that failures and mistakes may be avoided.