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Management by Objective

MBO is a modern performance evaluation method where managers work with subordinates to jointly set goals. This allows subordinates to have self-control over their own performance. MBO was pioneered by Drucker, McGregor, and Odiorne and involves managers and subordinates planning, organizing, controlling, communicating, and debating to achieve common goals. Key features of MBO include participatively set goals that are tangible, measurable, and focus on results rather than methods. MBO translates abstract management philosophies into concrete language and allows subordinates flexibility in decision making to achieve goals.

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46 views

Management by Objective

MBO is a modern performance evaluation method where managers work with subordinates to jointly set goals. This allows subordinates to have self-control over their own performance. MBO was pioneered by Drucker, McGregor, and Odiorne and involves managers and subordinates planning, organizing, controlling, communicating, and debating to achieve common goals. Key features of MBO include participatively set goals that are tangible, measurable, and focus on results rather than methods. MBO translates abstract management philosophies into concrete language and allows subordinates flexibility in decision making to achieve goals.

Uploaded by

hironjaicob
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Management by Objectives (MBO):

MBO represents a modern method of evaluating the performance of personnel. Thoughtful managers have become increasingly aware that the traditional performance evaluation systems are characterized by somewhat antagonistic judgments on the part of the rater. There is a growing feeling nowadays that it is better to make the superior work with subordinates in fixing goals. This would inevitably enable subordinates to exercise self-control over their performance behaviors. The concept of management by objectives is actually the outcome of the pioneering works of Drucker, McGregor and Odiorne in management science. Management by objectives can be described as a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individuals major areas of responsibility in terms of results expected of him and use these measures as guides for operating the unit and assessing the contributions of each of its members. MBO thus represents more than an evaluation programme and process. Practicing management scientists and pedagogues view it as a philosophy of managerial practice; it is a method by which managers and subordinates plan, organize, control, communicate and debate. Features MBO emphasizes participatively set goals that are tangible, verifiable and measurable. MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods). MBO, by concentrating on key result areas translates the abstract philosophy of management into concrete phraseology. The technique can be put to general use (non-specialist technique). Further it is a dynamic system which seeks to integrate the companys need to clarify and achieve its profit and growth targets with the managers need to contribute and develop himself. MBO is a systematic and rational technique that allows management to attain maximum results from available resources by focusing on achievable goals. It allows the subordinate plenty of room to make creative decisions on his own

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