Advantages of MBO (Management by Objective)

Question

What are the advantages of MBO (Management by Objective)?

Answer 1

The benefits of MBO are as given below:

1. Balanced Focus on Objectives: MBO forces the administration to place objectives with balanced stress on key effect area.

2. Better Managing Things: MBO stresses administrator to consider about preparation for results, rather than only planning activities or works.

3. Better Organizing: The positions in the organization can be made around the key effect areas.

4. MBO lessens Role Conflict and Ambiguity: MBO intends to provide clear targets and their order or priority, it lessens both these situations.

5. It offers more Objective Appraisal Criteria: The targets come out from the MBO procedure give a sound set of criteria for estimating the manager’s performance.

6. More Motivation: MBO assists and amplifies employee’s inspiration because it combines overall objective to the individual’s goals.

7. Managers Compete with each other: Managers are more likely to race against each other to complete task than with other managers.

8. Develop Personal Leadership: MBO assists every manager to build up personal leadership, especially the expertise in motivating, evaluating, counseling, planning, controlling, and listening.

9. MBO Identifies Problem Early: It recognizes problems better and early. A regular performance review session makes this possible.

10. Identifies Performance Deficiency:  MBO recognizes performance deficit and facilitates the management and the employee to set personal self development goals.