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Discussion Question:

Discuss whether Management by Objectives (MBO) is used to motivate or control the people?

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Replies to This Discussion

No matter what form the MBO approach takes in a given organization, it is essentially a process that helps to (a) direct managers’ attention toward results, (b) force members of the organization to commit themselves to specific achievement, and (c) facilitate their thinking in terms of their organization’s future needs and the setting of objectives to meet those needs. In addition, the MBO approach can supply the manager with greater measures of three of the tools he or she needs to make the best use of the organization’s greatest resource: people. The manager can: 1. Gain greater commitment and desire to contribute from subordinates by (a) allowing them to feel that the objectives they are working toward were not just handed to them but are really theirs because they played a part in formulating them, (b) giving subordinates a better sense of where they fit in the organization by making clear how the subordinates’ objectives fit into the overall picture, and (c) injecting a vitality into organizational life that comes with the energy produced as a worker strives to achieve a goal to which he or she has taken the psychological and (sometimes economic) risk to commit. 2. Gain better control and coordination toward goal accomplishment by (a) having a clearer picture of who is doing what and how the parts all fit together, (b) having subordinates who are more likely to control and coordinate their own activities because they know what will help and what will hinder their goal achievement, and (c) being able to see which subordinates consistently produce and which do not. 3. Gain an increased ability to help subordinates develop by (a) being better able to see their strengths and weakness in operation on a specific objective and (b) using a management approach that teaches the subordinates (and the manager, for that matter) to think in terms of results in the future—an approach that teaches them to try to anticipate change, to define clear and specific objectives, and to delineate concrete measurements that will tell them when they have achieved their goals.

Objectives of Management.( MBO)

Or ganizational obectives reviewed

Employee objectives set

Progress monitored

Performance evaluated

Achievers rewarded

The “Management by objective “ MBO approach , in the sense that it requires all managers to set specific objectives to be achieved in the future and enciurages them to contibually ask what more can be done is offered as a partial answer to this question of the organizational vitality and creativity .As a term ,  MBO  was first used by Peter Drucker in 1954.

All organizations eist for a purpose, and to achieve that purpose top management sets goals and objectives that are common to the whole organization.

The principle behind Management by objectives 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 if their own roles and responsibiities in achieving those aims. The complete MBO system is to get managers and empowered employees acting to implement and achieved their plans, which automatically achieve those of the organization.


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