What is management by objectives (MBO)?
Management by Objectives (MBO) is a strategic method to increase the performance of a business. This is a process completed by clearly and evidently stating the goals and objectives that are discussed and agreed between the management and employees.
Stated in a theory, when employees have their say in goals and objectives for the business boosts their motivation and commitment towards the organisation.
Benefits of management by objectives:
- Employees will feel more motivated and feel more part of the organisation, this means that they will take more pride in their work. Allowing positive outcomes for the business.
- It helps the organisation build a relationship between the employees and managers as they will be communicating with each other.
- Management builds goals for the business to make it successful.
Drawbacks of management by objectives:
- The goals can put pressure on the employees to complete the goals at a certain time.
- The management by objective focus of the goals to make the business successful, they forget about the health of the employees, culture of the business etc.