MSG Team's other articles

11423 Strategies to Improve Communication

Effective communication is the process of successful transmission of the message from the sender o the receiver. If the receiver is able to download the message in exactly the same way as the sender intended to do, communication is effective. The receiver must understand what the speaker wants to convey and accordingly must give his […]

10842 Nature and Scope of Public Administration

Bureaucracy is not an obstacle to democracy but an inevitable complement to it. Joseph A. Schumpeter The above quote by Schumpeter can call for a heated debate on its relevance and credence. However there is no denying that bureaucracy; since a couple of centuries or so; has been an integral part of the Government, the […]

11175 Role of a Leader in an Organization

Following are the main roles of a leader in an organization: Required at all levels- Leadership is a function which is important at all levels of management. In the top level, it is important for getting co-operation in formulation of plans and policies. In the middle and lower level, it is required for interpretation and […]

12976 Chain of Command, Business Continuity Planning, and Crisis Leadership in Corporates

What is the Chain of Command and how it worked in the Satyam and Infosys Crises’ We often hear the term Chain of Command mentioned in terms of how corporates need to have well defined rules for who becomes the decision maker when the CEO or the Chief Executive Officer is unable to or barred […]

12926 Corporate Meetings

Corporate Meetings are very crucial part of business activities. They are a significant means of formal communication. Meetings are a venue for generation of new and innovative ideas. These meetings are multipurpose in nature actually. They aim at discussing feedback and receiving feedback on the spot. The information of prior importance is given during meetings. […]

Search with tags

  • No tags available.

An effective management goes a long way in extracting the best out of employees and make them work as a single unit towards a common goal.

The term Management by Objectives was coined by Peter Drucker in 1954.

What is Management by Objective ?

The process of setting objectives in the organization to give a sense of direction to the employees is called as Management by Objectives.

It refers to the process of setting goals for the employees so that they know what they are supposed to do at the workplace.

Management by Objectives defines roles and responsibilities for the employees and help them chalk out their future course of action in the organization.

Management by objectives guides the employees to deliver their level best and achieve the targets within the stipulated time frame.

Need for Management by Objectives (MBO)

  • The Management by Objectives process helps the employees to understand their duties at the workplace.

  • KRAs are designed for each employee as per their interest, specialization and educational qualification.

  • The employees are clear as to what is expected out of them.

  • Management by Objectives process leads to satisfied employees. It avoids job mismatch and unnecessary confusions later on.

  • Employees in their own way contribute to the achievement of the goals and objectives of the organization. Every employee has his own role at the workplace. Each one feels indispensable for the organization and eventually develops a feeling of loyalty towards the organization. They tend to stick to the organization for a longer span of time and contribute effectively. They enjoy at the workplace and do not treat work as a burden.

  • Management by Objectives ensures effective communication amongst the employees. It leads to a positive ambience at the workplace.

  • Management by Objectives leads to well defined hierarchies at the workplace. It ensures transparency at all levels. A supervisor of any organization would never directly interact with the Managing Director in case of queries. He/She would first meet his reporting boss who would then pass on the message to his senior and so on. Every one is clear about his position in the organization.

  • The MBO Process leads to highly motivated and committed employees.

  • The MBO Process sets a benchmark for every employee. The superiors set targets for each of the team members. Each employee is given a list of specific tasks.

Limitations of Management by objectives Process

  • It sometimes ignores the prevailing culture and working conditions of the organization.

  • More emphasis is being laid on targets and objectives. It just expects the employees to achieve their targets and meet the objectives of the organization without bothering much about the existing circumstances at the workplace. Employees are just expected to perform and meet the deadlines. The MBO Process sometimes do treat individuals as mere machines.

  • The MBO process increases comparisons between individuals at the workplace. Employees tend to depend on nasty politics and other unproductive tasks to outshine their fellow workers. Employees do only what their superiors ask them to do. Their work lacks innovation, creativity and sometimes also becomes monotonous.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles

Common Threats to an Organization

MSG Team

Communication at Workplace

MSG Team

Organizational Development in Pandemic

MSG Team