Management Concepts & Organisational Behaviour - MANAGEMENT BY OBJECTIVES
Prerequisites of MBO
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MBO is not merely a goal-setting tool. It is a philosophy and has to be understood thoroughly by the managers concerned with achievement of objectives.
Prerequisites
of MBO
1. MBO is not merely a goal-setting tool. It is a philosophy and has to be understood thoroughly by the managers concerned with achievement of objectives.
2. Top management must be willing to
implement the system wholeheartedly. Its support and encouragement are crucial
for the success of MBO. The necessary democratic climate has to be created in
the organisation for setting the goals in a realistic way.
3. Goals have to be spelt out in
specific and clear terms. To the extent possible, they must be made realistic
because goals motivate employees towards better performance.
4. The key result areas (KRAs) of
the business have to be identified and appropriate goals have to be specified
for these areas. All the important areas of the business must be covered with
meaningful goals.
5. It has to be realized that goal-setting
in the MBO process is not an end by itself. It is only a means to achieve
organizational effectiveness. Otherwise, goal-setting becomes the primary task
rather than their achievement.
6. Appropriate organisation
structure has to be designed with well-understood relationships among people
such that every goal becomes some individual’s responsibility.
7. Besides clarifying the
organizational roles by adopting a suitable organisation structure, attention
has to be paid on the resources required by the people to achieve the goals.
Otherwise, goals by themselves, however effective they are, do no assure
performance. Performance depends on the timely availability of resources.
Non-availability or inadequate access to the resources frustrates the
individuals concerned with the achievement of goals.
1. MBO is not merely a goal-setting tool. It is a philosophy and has to be understood thoroughly by the managers concerned with achievement of objectives.
Tags : Management Concepts & Organisational Behaviour - MANAGEMENT BY OBJECTIVES
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