Management by Objectives - 1214 Words

MANAGEMENT BY OBJECTIVES (MBO) is a practical application of the reasoning behind the notion of goal-setting theory. MBO is a process in which employees participate with management in the setting of goals or objectives. An essential feature of an MBO program is that it involves a one-on-one negotiation session between a supervisor and subordinate in order to set concrete, objective goals for the employee’s performance. During the session a deadline is set for the measurement of accomplishment, and the paths to the desired goals. and the removal of possible obstacles are discussed. After an established period of time has elapsed (typically six months or year), the supervisor and subordinate meet again to review the subordinate’s performance†¦show more content†¦Some managers prefer to retain an evaluative and superior posture and are uncomfortable with the notion of being a coach or counselor to their subordinates. Personality conflicts between superiors and sub ordinates are another potential problem for goal-setting systems, as is competitiveness. A superior who feels threatened by talented subordinates may do little to help them be more successful and, consequently, more visible, In addition, subordinates may hesitate to set challenging goals for fear of failure and its consequences. MBO systems also tend to emphasize the quantifiable aspects of performance while ignoring the more qualitative aspects. This is an understandable tendency, since participants in MBO systems are encouraged to focus on such dimensions of performance. Qualitative aspects of performance, which are often more difficult to identify and measure, are likely to be overlooked or de-emphasized. For example, how can the quality of service that an organization provides or an organization’s image in the local community be defined and measured? A1 2 Because the success of an MBO system rests heavily on the quality of the relationship between supervisor and subordinates, the degree of trust and supportiveness that exists in a work unit is a central concern. For an MBO system to be highly successful, these elements are critical prerequisites, The absence ofShow MoreRelatedManagement by Objectives1215 Words   |  5 PagesManagement by Objectives Motivating employees seems to be a challenge for managers - Discuss the advantages and disadvantages of the MBO program and provide at least one example to support your discussion. Goal-Setting Theories have evolved since the 50s and have an impressive documented literature. The Goal-Setting Theory addresses the issues that goal specificity, challenge, and feedback have on performance (Robbins, 2009, p185). Setting goals and motivating employees are always an importantRead MoreManagement By Objectives (MBO) Essay972 Words   |  4 PagesI have selected the Management by Objectives (MBO) theory of management because this relates the most to my business ideas and current working environment. The MBO approach uses many familiar processes that I am accustomed to using such as goal setting, employee participation, and feedback. Using all of these tools has helped to increase overall job performance and help to provide a more informed employee and management team. The performance of the management has to be the same goals as the businessRead MoreManagement Analysis : Management Process906 Words   |  4 Pages Management by Objectives, MBO, is a management process where managers and employees decide together what goals the employee should work to achieve. The goals set for the employee are agreed upon by both the employee and the manager. The employee is evaluated based on these goals and may be given a raise or a promotion if they have achieved the set goals within some set period of time. This management process was first introduced by Peter Drucker in his 1954 book â€Å"The Practice of Management† withRead MoreStrategic Management : Objectives And Objectives1343 Words   |  6 Pagesstrategic management defined in the text, and what are its four key attributes? 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By clearly setting the goals for the organization, it allows employees to see how their daily activities can help the organization achieve the goals that they have set out to accomplish. Using management by objective allows for an organization to better measure employee performanceRead MoreStrategic Management : Objectives And Objectives Essay1493 Words   |  6 Pages1. Strategic management to my understanding simply means how any organization manages its resources in order to accomplish its goal and objectives. It engages the setting up of objectives, analyzing the competitive environment and evaluating strategies and making in no doubt it all revolve out transversely in the organization. The below flow chart specifies the process of planning, implementation and review components for strategic management. According to me, some of the reason as to whyRead MorePerformance Management At The Retail Store1519 Words   |  7 Pages Performance Management In the retail store that in which I work as an HR manager clothes are sold along with shoes, handbags, linens, etc. Recently my company had its worst quarter and being the HR manager I have asked by the upper management to improve the performances of the retail store employees on an immediate basis so that the sales and merchandise of the store can be improved and good customers can be retained along with attracting new customers. When I got into the process of assessing theRead MoreEssay on The Life of Peter Ferdinand Drucker2289 Words   |  10 PagesINTRODUCTION Background of Peter Drucker Peter Ferdinand Drucker is the real name for Peter Drucker and he was an Austrian-born American. He was known as a management consultant, educator and author that had contributed to the philosophy and practical foundations of the modern business organization. He was born on 19 November 1909 at Vienna, Austria. At that time, his mother was a medicine student while his father was a lawyer and high-civil servant. His mother is Caroline Bondi and his father