Management By Objectives Flashcards
Management by objectives
It involves the break down of aims and goals of an organisation into targets and objectives for divisions, departments, managers and workers.
Working together to meet the same objectives would have a clear structure and long term strategy.
By including employees with the goal setting, they are likely to be more motivated.
Advantages of MBO
Improved management control
Motivate the workforce
Improve communication in the organisation
Improve financial control
Allows people to be aware of their responsibilities
Everyone is working towards a common goal
Disadvantages of MBO
Management time is spent on the process of setting objectives.
Goals may change over time due to dynamic business environment
If all levels of the hierarchy are not involved in setting objectives, then they may not be committed to them
