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Objectives Objectives may be defined as final result of an organization tries to achieve in a specific time period. Moreover, the objectives are a future oriented and results in state of affairs. It helps in providing to make an organization in its attention and effort, basically focused on a certain way. Advantages of objectives 1. An objective defines the purpose of an organisation 2. It helps in planning 3. It helps in decision making 4. It helps in co-ordination 5. It helps in motivation Management By Objectives [MBO] Introduction The first original work on MBO can be found in Peter Drucker’s book, The Practice of Management, published in 1954. MBO is a process which ideally begins at the top of the organization with the establishment of specific organizational objectives. Then, at second level of the organization, managers working with their bosses, establish objectives for their departments that are consistent with the organization’s objectives. This procedure is repeated down to the lowest level managers in the organization. The value of MBO is that it communicates the mission, goals and objectives of the organization to the lower levels. The lower level managers work out their plans and targets in consultation with their subordinates. These are then sent to higher levels for consideration. MBO, thus, allows employees to participate in planning and control of their own work This involvement of employees increases their motivation and commitment to their work. Management By Objectives [MBO] Meaning Management by objectives (MBO) is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees. MBO is a method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. It helps to improve communication between employee and management, increase employee understanding of company goals, focus employee efforts upon organisational objectives and provide link between pay and performance.
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