MBO | What is Management By Objective? | Advantages and Disadvantages of MBO
Summary
TLDRThis video from educationleaves.com explores Management by Objectives (MBO), a management practice that enhances organizational performance by setting clear goals agreed upon by both management and employees. MBO, popularized by Peter Drucker, is defined as focusing on results rather than activities, improving motivation, commitment, and communication. The process involves defining organizational and employee objectives, monitoring performance, evaluating performance, and providing feedback. MBO offers advantages like better planning and management training but requires proper knowledge and realistic goals to avoid failure.
Takeaways
- đŻ Management by Objectives (MBO) is a management practice aimed at improving organizational performance by clearly defining goals and subordinate objectives agreed upon by both management and employees.
- đ The full form of MBO is 'Management by Objectives', which was popularized by Peter Drucker in his book 'The Practice of Management'.
- đ MBO improves employee motivation by setting specific work goals, enhancing commitment, and fostering better communication between employees and management.
- đ The process of MBO focuses on results rather than activities, also known as Management by Results (MBR).
- đ The MBO process involves defining organizational goals, employee objectives, continuous monitoring, performance evaluation, feedback, and performance appraisal.
- đ MBO helps in formulating better management training programs based on performance reviews, thus improving the management team's effectiveness.
- đĄ MBO encourages managers to simplify plans and activities for optimal results and increases employee commitment to achieving their goals.
- đ MBO aids in more effective planning and provides management with greater confidence in managing tasks.
- đš A potential disadvantage of MBO is that it may fail if the manager lacks proper knowledge about the philosophy of MBO.
- đ Goals set within MBO should be attainable and realistic; unrealistic goals can decrease employee confidence.
- âł Setting up goals in MBO requires time, patience, study, and experience, which can be a challenge if not managed properly.
Q & A
What is the full form of MBO?
-The full form of MBO is Management by Objectives.
What does MBO aim to improve in an organization?
-MBO aims to improve the motivation of employees by setting specific goals, commitment, and communication between employees and management.
What is another term for Management by Objectives?
-Another term for Management by Objectives is Management by Results (MBR).
Who popularized the concept of MBO?
-Peter Drucker popularized the concept of MBO in his book 'The Practice of Management'.
What is the primary focus of the MBO process?
-The primary focus of the MBO process is on results rather than the activities involved.
What are the steps involved in the MBO process?
-The steps in the MBO process are: defining organizational goals, defining employee objectives, continuously monitoring performance and progress, performance evaluation, providing feedback, and performance appraisal.
How does MBO help in formulating management training programs?
-MBO helps in formulating better management training programs based on performance reviews and feedback from employees.
What are some advantages of MBO?
-Advantages of MBO include simplifying plans for better results, increased employee commitment, better management training programs, more effective planning, and increased management confidence.
What are the potential disadvantages of MBO if not implemented properly?
-Potential disadvantages of MBO include failure if the manager lacks proper knowledge of MBO philosophy, setting unrealistic goals that decrease employee confidence, and the time-consuming process of setting up attainable goals.
How does MBO contribute to a positive and work-friendly environment?
-MBO contributes to a positive and work-friendly environment by allowing organization members to see their accomplishments as they achieve each objective, which reinforces a sense of achievement and motivation.
What is the importance of performance appraisal in the MBO process?
-Performance appraisal in the MBO process is important as it allows supervisors to review the performance of employees regularly, which helps in evaluating their contributions and making informed decisions regarding their compensation and development.
Outlines
đ Introduction to Management by Objectives (MBO)
This paragraph introduces the concept of Management by Objectives (MBO), a management practice aimed at enhancing organizational performance through clear goal setting. MBO is defined as a method that boosts employee motivation by setting specific work goals, improving commitment, and facilitating better communication between employees and management. The process focuses on results rather than activities, often referred to as Management by Results (MBR). It was popularized by Peter Drucker in his book 'The Practice of Management.' The paragraph outlines the process of MBO, which includes defining organizational and employee objectives, continuous monitoring, performance evaluation, feedback, and performance appraisal, emphasizing the benefits of a results-oriented approach.
Mindmap
Keywords
đĄManagement by Objective (MBO)
đĄObjectives
đĄPerformance Monitoring
đĄPerformance Evaluation
đĄFeedback
đĄPerformance Appraisal
đĄMotivation
đĄCommitment
đĄPeter Drucker
đĄAdvantages
đĄDisadvantages
Highlights
Introduction to Management by Objectives (MBO) and its significance in improving employee motivation and commitment.
MBO's full form is 'Management by Objectives', focusing on setting specific work goals to enhance organizational performance.
MBO's alternative name, 'Management by Results (MBR)', emphasizing the focus on outcomes over activities.
Peter Drucker's role in popularizing MBO through his book 'The Practice of Management'.
Definition of MBO as a management practice aimed at increasing organizational performance through clear goal setting.
The process of MBO, starting with defining the organization's goals to guide employee efforts strategically.
Involvement of employees in defining their objectives, ensuring alignment with organizational goals.
The importance of continuous monitoring of performance and progress for both managers and employees.
Performance evaluation as a key component of MBO, allowing employees to understand their standing within the organization.
The role of feedback from clients in the MBO process to monitor and improve organizational actions.
Performance appraisal as a regular review mechanism for employee performance within organizations.
Advantage of MBO in forcing managers to simplify plans for optimal results.
Employee commitment to achieving their best as a result of MBO's goal-setting process.
MBO's contribution to formulating better management training programs based on performance reviews.
The effectiveness of MBO in enhancing planning within organizations.
MBO's ability to instill more confidence in management when handling tasks.
The potential failure of MBO if the manager lacks proper knowledge about its philosophy.
The necessity of setting attainable and realistic goals in MBO to maintain employee confidence.
The time-consuming nature of goal setting in MBO, requiring patience, study, and experience.
Invitation to read more details or download the PDF, and a call to like, share, and subscribe to the channel.
Transcripts
hi welcome to educationleaves.com
in this video we are going to learn
about management by objective or mbo
topics that we are going to cover in
this video are
what is mbo definition of mbo
process of management by objective
advantages
and disadvantages of management by
objective
when we hear the term mvo the first
question that comes into our mind is
what does mbo stand for well
full form of the mbo is management by
objectives
mbo basically improves the motivation of
an employee by setting a specific goal
of their work
it also improves the commitment and
allows for better communication between
employee and management this process
also helps the organization members to
see their accomplishments as they
achieve each objective
which reinforce a positive and work
friendly environment
the process of management by objective
focuses more on results rather than the
activities involved
it is also known as management by
results mbr
it was popularized by peter drucker in
his book the practice of management
definition of management by objective
mbo or management by objective is
defined as a management practice
which aims to increase organizational
performance by clearly defining the
goals and subordinate objectives of the
organization
that are agreed to both management and
employees process of mbo
one define the goals of the organization
defined organizational goal helps
manager and supervisors to guide
employees effort in a strategically way
and they work to achieve it two
define the objectives of the employees
after making sure that employees
managers have informed of patient
general objectives
plannings and strategies the manager can
then proceed to work with employees in
fixing their objectives
3. continuously monitoring performance
and progress
it is not only essential for making line
managers in business but also it is
equally
important for monitoring the performance
and progress of the employees
4. performance evaluation
performance evaluation lets an employee
understand where does he or she stands
as compared to other employees in the
organization
5. providing feedback
one of the main parts of the mbo process
is taking feedback from valuable clients
that allows to monitor
and correct or improve actions of the
product or organization
six appraisal of performance
a regular review of the performance of
the employee within organizations is
called performance appraisal
by the performance appraisal a
supervisor can review the payment of an
employee
advantages of mbo 1.
it forces the manager to simplify the
plan and activities for the best results
two employees commit themselves to give
their best to move its achievements
three it helps the management team to
formulate better management training
programs based
on performance reviews 4.
management by objectives helps in more
effective planning
5. management by objectives provides
more confidence in the management in
managing a task
disadvantages of mbo 1.
if the undertaking person or manager
don't have proper knowledge about the
philosophy of mbo then the mbo will
definitely fail
2. goals should be attainable and
realistic
if the goals are too hard to complete it
decreases employees confidence
3. setting up a goal requires a lot of
time
patience study and experience
if you want to read in details or
download the pdf
link in the description like and share
the video and please don't forget to
subscribe to my channel
thanks for watch
5.0 / 5 (0 votes)