Management by Objectives and Its Advantages and Disadvantages

Management by Objectives
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Management by Objectives
Management by objectives (MBO) is a management strategy introduced by Peter Drucker in 1954 in which specific, measurable goals are set for an organization or individual, and progress is regularly reviewed to ensure that these goals are met (Kyriakopoulos, 2012). It is largely a system or a process where the manager sits down with the subordinates and develops specific objectives that they should accomplish within a given time frame under the supervision of the manager. Thus, the key elements of MBO include setting clear and measurable objectives, involving employees in the goal-setting process, and regularly evaluating progress towards the objectives. The approach is intended to align the goals of the organization or individual with the overall mission and strategy of the company, and to increase employee motivation and engagement.
Potential Advantages
Regardless of the approach taken by an organization, MBO has several advantages to an organization. First, the use of MBO inspires commitment and a desire to contribute from subordinates by involving them in goal setting, providing them with a sense of their role within the organization, and inspiring a feeling of work ownership (Kyriakopoulos, 2012). Regarding this, MBO gives subordinates a sense of ownership and responsibility for their work, thereby increasing their motivation to achieve goals and contribute to the success of the organization.
Second, MBO improves control and coordination toward goal accomplishment as it provides a clear direction and purpose for the organization, which can help to increase focus and productivity. The clarity and direction increase control over the work being done and ensure that resources are being used effectively to achieve the organization's goals (Kyriakopoulos, 2012). In the same vein, MBO aligns the goals of the organization or individual with the overall mission and strategy of the company, which can help to ensure that resources are used effectively.
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