Management by objective is the approach by which both employees and superior jointly set performance goals and duties. Having participated in the fixation of his own goals, the employee becomes more involved dutiful and active in performance. MBO facilitates employees to adjust their time schedules from time to time to attain the goals in planned time. It helps employees understand objectives and duties clearly.
MBO HAS THREE ELEMENTS
1. Managers (Subordinate manger) should be measured what they accomplish rather than how they spend their time.
2. Manager must be well informed of their objectives. Manager objectives are their duties that they must perform.
3.Manager and their subordinates should jointly set performance objectives.
PROCESS OF MBO
The process starts at the top of an organization and has the active support of the chief executive who give direction to the organization it is not essential that objective setting start t the top however it can start at the division level at the marketing manager level or even lower e.g in one company the system was first started in a division where it was carried down to the lowest level of supervision with an interlocking networking network of goals. As in all other kinds of planning one of the critical needs in MBO is the development and dissemination of consistent planning premises no manager can be expected to set goals or establish budgets without guidelines.
ADVANTAGES OF MBO
1.Organization is clearly defined in setting MBO organization roles and structure have to be clearly defined. Clearly defined authority is delegated key clearly defined
2. Better management the quality of management is improved because mbo focuses its attention in planning, Organization and controlling
3. Personnel Commitment the subordinate manager is committed dutiful and active in performance . he has high morale
4. Effective control managers are self directed and controlled.