Working and Steps of MBO

Working and Steps of MBO

Introduction

MBO is a management philosophy implemented by Peter Drucker. MBO stands for Management by objective. This is a process of setting up goals and objectives by being self- controlled, execute those goals and then evaluate the achievement level. MBO is a process to attain organization's goals and objectives by specifying them to all level employees, so they can understand their role in the organization, and what exactly employers want them to do in order to reach the goals. MBO not only involves making employees understand their work activities and duties, but also make them implement those activities for which their performance will get evaluated. This helps them to motivate them in achieving future objectives.(Kralev, 2011).

Discussion

MBO Program

According to an MBO program, firstly the management establishes the objectives for each department and employees in each department. The employees and their supervisors establish the objectives jointly by discussing the required results. All these goals are in accordance with the overall organizational goals and they must lead to the attainment of organizational goals.Then the management evaluates the progress on regular intervals. They review whether the subordinates are going in a right path to achieve the goals or not. This helps management to revise the goals ahead of time if any problem occurs and take corrective and preventive measures to solve the problems.

After that, the superiors match the actual goals and objectives with the set goals. This is to measure the performance of subordinates.. Based on this evaluation, management rewards the subordinates to provide them motivation for the future goals(Kralev, 2011).

Six Steps of an MBO Program

There are six steps that involved in an MBO program.

Develop Goals for the Work-group

In the first step, the main work group members develop goals for the whole group and particular ...