Advantage of MBO

Management by Objective is an important performance tool. It has certain Advantage.

1.MBO helps and increases employee motivation because it relates overall goals to the individual goals and helps to increase an employee's understanding of where the organisation is and where it is heading.

2.Manager are more likely to complete with themselves than with others managers.This kind evaluation can reduce internal conflict that often arise when manager compete with each other to obtain scarce resources.

3.MBO results in a "Means Ends" Chain.

4.MBO reduce the conflicting and ambiguity.

5.MBO provides more objective appraisal criteria.

6.MBO forces and aids in planning.By forcing top management to establish a strategy and goals for entire organisation.

7.MBO identifies problem better and early.

8.MBO helps the individual manager to develop personal leadership,especially the skills of listning,planning,counselling,motivation and evaluation.

9.MBO pragramme takes a great deal of time,energy and form.

10.Clarity of goals –With MBO, came the concept of SMART goals i.e. goals that are:

Specific Measurable Achievable Realistic, and Time bound.

11.The focus is on future rather than on past. Goals and standards are set for the performance for the future with periodic reviews and feedback.

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

13.Better communication and Coordination – Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period.