Management by objective : MBO

Introduction and meaning of management by objective MBO

W. Humble developed management by objective MBO that is considered to be a new approach to practical management for result, it has several labels such as managing for results, management by results , goals management and management by commitment. While management by goal is probably a more appropriate titles, the MBO name has popularized the technique.

W. Humble defined MBO as a process where by the superor and the subordinate managers of an organization identified goals common to each, define areas of expected result , and use these to measurers as guide for operating the unit and accessing the contribution of each member of the organization . He added that the technic is design to improve employees motivation through thier participation in setting their individual goals and knowing in advance presily how they will be evaluated..

This approach focuses on result rather than the behaviour of Individuals operating employees,or group of employees. focuses on the improvements of employees motivation and control of thier jobs by allowing them to participate in setting their own objective or goals . It enhance the employees to know exactly how the task will be performed and the criteria for assessment. This system involve five basic steps.. Top management consult with managers to set long range goals and how to accomplish them . Sub goals are determined for each department and each individual in the unity from the corporate goals . Managers sit with their supervisor review the objective and content themself to these objective.

Implementation and review of plan and constant two way communicating among all participants.

Monitoring progress by matching objective and accomplishment and making necessary corrections or improvement.

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THE MANAGERIAL STAGES

Steps involved in the MBO program . Most MBO programme follow this seqeunce.

1. The surbodinate develops a description of his or her own job and discuss the description with his superor.

2. Short term performance goals are established. During the period in which MBO programme operating , the subordinate meets regularly with the superior to discuss progress towards the goals

3. Specific intermediate check point are established to measure progress towards meeting the goal . At the end of the defined period, subordinate and Superior meet to evaluate the result of the subordinate effort . New goals for the following period are established

4. Motivating employees by relating result acheived to reward and promotion opportunities.

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The meaning of organizational structure and objectives

Benefits of  management by objective programme

The major benefits of an MBO program is the linking of the objective setting with the individuals motivation.since the individuals employees participate in seetise his or her own goals , there is a commitment to them . Workers know both the task to be accomplished and how they will be evaluated. I'm proved moral may also result from regular face to face communication between employees and thier superor.

Problem with management by objective

When MBO program falls or does not measure up to management expectations, one or more of the following problems area are likely to exist.

1. Lack of support or involvement by top management.

2. Lack if commitment

3. Objective hanaded to subordinate rather than the result of joint agreement.

4. Poor implement methods 

5. Little coaching and assistance

6. Over emphasis on appraisal.

7. Over emphasis on paper work.

 Practice in management by objective

1. The organization objectives should be viewed and determine for the total firm and company,it is usually derive according to the statement vision and mission of the company or organization.

2. Secondly is to enlighten and translate the goals and objectives of the firm or organization to the employees. This concept can be summarize as smartv.

We're S stands for specific, M stands for measureble A stands for acceptable R is realistic and T time bond.

3. The next step is employees motivation in setting thier own objective individually. Employees should be Ginge ed to set thier own goals , after the organizational objective have being explain to the employees.

4. The next step involved check mating the employees progress to measure their growth and development in their performance.

5. The last step involved rewarding and evaluating the progress made so far  with feed back on the achievement of each employee in the organization.

The goal of management by objective (MBO)

The use of objective to measure the growth and performance of a firm and the workers , comparing the actual performance in production which is measure with specific given standard of operations, at this point mangers will be able to identify gray areas that need improvement and efficiency. Both the employees and the managing board agrees and comform to the set standard as their objective in the entire firm .

The inventor of MBO

Management by objective was first mention in a book that was titled the practice of management by Peter F. Druker in 1954