Management By Objectives (Mbo) - Peter Drucker Mbo

603 Words3 Pages
Pros and Cons Of Management by Objective Management by objectives is a technique applied primarily to personnel management. In its essence, it requires deliberate goal formulation for periods (like the next calendar or business year); goals are recorded and then monitored. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. All the advantages of managements by objectives can be summarized by saying that is results is greatly improved management. Objectives cannot be established without planning is the only kind that makes sense. Management by objectives forces managers to think about planning for results, rather than merely planning activities or work. Another major benefit of managing by objectives is that is forces managers to clarify organizational roles and structures. To the extent possible, positions should be built around the key results expected of the people occupying them. One of the great advantages of management by objectives is that it encourages people to commit themselves to their goals. No longer are people just doing work, following instruction, and waiting for guidance and decisions; they are now individuals with clearly defined purposes. They have had a part in actually setting their objectives; they have had an opportunity to put their ideas into planning programs. In they same way that management by objectives sparks more effective planning, it also aids in developing effectives controls. Control involves measuring results and taking action to correct deviations from plans in order to ensure that goals are reached. MBO is often achieved using set targets, Objectives for MBO must be SMART (Specific, Measurable, Achievable, Relevant, and Time-Specific Objectives need quantifying and monitoring. Reliable management information systems are needed to establish relevant objectives and monitor their "reach ratio" in an objective way. Pay
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