Management

Introduction:

Industrial management in the early stages primarily used Management by Objectives (MBO) at higher management level. But, it is used at ground level these days to insure productivity. It encompasses clear objective at a group level and periodic measurement of employee’s performance. Due to fierce competition prevailing not only at a national level but at a global level, quality management has surged to its peak. Hence, emanate the need for implementation of effective MBO (Management by Objectives) system which is in fact an effective goal setting technique for management.

Management by Objectives (MBO) indeed is also an appraising technique to value employee performance. Management by Objectives (MBO) involve employee participation, goal specificity, performance feedback, reward based on performance, job description, participative decision making. Preponderance of organization is dramatically affected in terms of productivity because of better employee performance. Hence, Management by Objectives (MBO) offers a clear goal, specifies job responsibilities and reduce ambiguity through continuous performance feedback.

It not only influences employee’s performance but also promote organizational productivity on the whole. Commitment towards the goal attainment improves job satisfaction as well as group productivity. Employees should be energetic who operate all their capability so as to attain the specified goal. According to Antoni, C. (2005) Management by Objectives (MBO) is an effective tool for leading self-regulating teams.

Common Elements of Management by Objectives (MBO) :

Source: Robbins and DeCenzo, Fundamentals of Management, Sixth edition.

1. Goal Specificity: Firstly specific goals are set which when achieved should bring forward the results that support organizational, operational, tactical, strategic objectives and plan.

2. Participative Decision Making: Goals when set by the participation of subordinates allows them to achieve...