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MBO

An effective management goes a long way in extracting the best out of employees and make them work as a single

unit towards a common goal.

The term Management by Objectives was coined by Peter Drucker in 1954.

What is Management by Objective ?

The process of setting objectives in the organization to give a sense of direction to the employees is calledas Management by Objectives.

It refers to the process of setting goals for the employees so that they know what they are supposed to do at theworkplace.

Management by Objectives defines roles and responsibilities for the employees and help them chalk out their futurecourse of action in the organization.

Management by objectives guides the employees to deliver their level best and achieve the targets within thestipulated time frame

Need for Management by Objectives (MBO)

The Management by Objectives process helps the employees to understand their duties at theworkplace.

KRAs are designed for each employee as per their interest, specialization and educational qualification.

The employees are clear as to what is expected out of them.

Management by Objectives process leads to satisfied employees. It avoids job mismatch andunnecessary confusions later on.

Employees in their own way contribute to the achievement of the goals and objectives of theorganization. Every employee has his own role at the workplace. Each one feels indispensable for theorganization and eventually develops a feeling of loyalty towards the organization. They tend to stick tothe organization for a longer span of time and contribute effectively. They enjoy at the workplace and donot treat work as a burden.

Management by Objectives ensures effective communication amongst the employees. It leads to apositive ambience at the workplace.

Management by Objectives leads to well defined hierarchies at the workplace. It ensures transparency atall levels. A supervisor of any organization would never directly interact with the Managing Director incase of queries. He would first meet his reporting boss who would then pass on the message to hissenior and so on. Every one is clear about his position in the organization.

The MBO Process leads to highly motivated and committed employees.

The MBO Process sets a benchmark for every employee. The superiors set targets for each of the teammembers. Each employee is given a list of specific tasks.

Limitations of Management by objectives Process

It sometimes ignores the prevailing culture and working conditions of the organization.

More emphasis is being laid on targets and objectives. It just expects the employees to achieve theirtargets and meet the objectives of the organization without bothering much about the existingcircumstances at the workplace. Employees are just expected to perform and meet the deadlines. TheMBO Process sometimes do treat individuals as mere machines.

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The MBO process increases comparisons between individuals at the workplace. Employees tend todepend on nasty politics and other unproductive tasks to outshine their fellow workers. Employees doonly what their superiors ask them to do. Their work lacks innovation, creativity and sometimes alsobecomes monotonous.

OD

A set up which brings together individuals from different backgrounds, varied interests a

specializations on a common platform for them to work as a single unit and achieve cert

predefined goals is called an organization.

An organization must make money for its survival. It is essential for the employees to de

their level best and eventually increase the productivity of the organization.

What is Organization Development ?

Organization Development refers to the various ways and procedures to increase theproductivity and effectiveness of an organization.

Organization Development includes the various techniques which help the employees as

the organization adjust to changing circumstances in a better way.

Why Organization Development ?

The concept of Organization development enables the organization to

achieve the targets and meet the objectives at a much faster rate.

The employees as a result of organization development respond better to

changes in the work culture.

Organization development helps the employees to focus on their jobs

and contribute in their best possible way.

Management can handle the employees in a better way as a result of

organization development.

Kurt Lewin is ideally believed to be the father of Organization development.

OD is action oriented. It starts with a careful organization-

wide analysis of the current situation and of thefuture requirements, and employs techniques ofbehavioral

sciences such as behavior modeling, sensitivity training,

and transactional analysis. Its objective is to enable

the organization in adopting-better to the fast-

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changing external environment of new markets, regulations,

and technologies. OD is a process of continuous diagnosis,

action planning, implementation and evaluation, with the goal

of transferring knowledge and skills to organizations to improvetheir capacity for solving problems and managing future

change.

OD Techniques

career planning,sensitivity training ,process consultation ,team

building,intergroup dev,managerial grid,surveys,MBO,

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