Discuss the process/features of MBO (May’12, May’13) - Banking Diploma Education

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Tuesday, November 26, 2013

Discuss the process/features of MBO (May’12, May’13)

Q. Discuss the process/features of MBO (May’12, May’13).
Behind the principle of Management by Objectives (MBO) is for employees to have a clear understanding of the roles and responsibilities expected of them. Then they can understand how their activities relate to the achievement of the organization's goal. Also places importance on fulfilling the personal goals of each employee.

Some of the important features of MBO are:

1) Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment. This increases employee job satisfaction and commitment.

2) Better communication and coordination – Frequent reviews and interactions between superiors and subordinates help to maintain harmonious relationships within the organization and also to solve many problems. 

3) Clarity of goals

4) Subordinates tend to have a higher commitment to objectives they set for themselves than those imposed on them by another person.

5) Managers can ensure that objectives of the subordinates are linked to the organization's objectives.

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