Thursday, December 15, 2011

MBO

MBO-(MBO) is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization.

"The superior and subordinate managers of an organisation jointly define its common goals, define each individual's major areas of responsibility in terms of the results expected of them and use these measures as guides in operating the unit and assessing the contribution of each of its members."
Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources.
*Goals--It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives.
MBO --
-participate in the strategic planning process, in order to improve the implementability of the plan, and
-implement a range of performance systems, designed to help the organization stay on the right track.

*Main Principle--The principle behind Management by Objectives (MBO) is to make sure that everybody within the organization has a clear understanding of the aims, or objectives, of that organization, as well as awareness of their own roles and responsibilities in achieving those aims. The complete MBO system is to get managers and empowered employees acting to implement and achieve their plans, which automatically achieve those of the organization.

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