3 Advantages and disadvantages of MBO
The above has detailed the concept and the basic features of the model. But what do these features mean in practice? To understand the model, you also need to consider the strengths and weaknesses of the approach.
Advantages of MBO
MBO has plenty of advantages relating to the operational effectiveness and the enhanced relationships between the different stakeholders. Drucker thought of effectiveness as something the management has to focus on and through the communicative and participative style, organisations can improve the rate at which they achieve objectives. In essence, the fact that objectives are organisation-wide and they are appropriately discussed prior to setting them, the organisation can
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Management hierarchies are understood, which helps devise strategies for deeper inclusion. Management at all levels has a say in operational objectives, together with the inclusion of employees. Studies have shown how better inclusion of different opinions and backgrounds can not just result in better results, but also improve relationship. When management and employees are not divided and kept secret, communication between the two groups improves. The strong feedback systems of MBO provide people the opportunity to improve the work input, but also to self-development. The ability to voice opinions without the fear of punishment creates an environment of trust and respect. Both managers and employees feel appreciated and respected, which builds mutual trust and understanding. As communication becomes better, the organisation will benefit. Job satisfaction is higher and effectiveness to reach operation goals …show more content…
While the MBO model is a straightforward one with clear steps of implementation, it does require a systematic approach to implementation. For the model to work efficiently, the approach has to be followed rigorously, which can be time-consuming and difficult to maintain. In essence, the model requires careful monitoring and enforcing even after the initial stage, which adds pressure on the organisation in terms of resources. The model is rather rigid, resulting in a situation where the rules and processes must be followed. This requires knowledge, time and resources. The MBO model brings about plenty of paperwork in the form of training manuals, feedback forms, and performance data collection. The rigid system can add extra burden on staff and reduce
The term ‘Mabo’’, as described in media reports refers to all the issues concerning the Australian High Court Judgment in the Mabo against Queensland Case. The Mabo decision was named after Eddie Mabo, a Torres Strait islander who regarded the Australian Law on land ownership wrong and challenged the Australian legal system. Eddie Mabo was born on the 29th of June 1936 on Murray Island. Murray Island is between mainland Australia and Papua New Guinea. In his early days of childhood, at the age of 16, Mabo was banished from Murray Island for breaking a customary law and moved to Queensland, where he worked various jobs such as a deck hand and cane cutter. At the age of 23 he married Bonita Nehow and settled in Townsville and had ten children. In Townsville he was a spokesperson for the Torres Strait Islander community and was involved in the Torres Strait islander advancement league. While working as a groundskeeper on James Cook University in 1974, he discovered that his people’s traditional land was actually owned by the government.
Due to the existence of diversity, organizations need to use a communication process that promotes quality relationships among employees and the overall productivity. However, the type of communication model depends on the degree or type of diversity that exist in an organization. Therefore, the communication process must be inclusive to enhance the general perception and understanding of the existing business communication (Claretha, 2014). For example, some employees consider frequent departmental meetings and memos are time wasting and such perceptions can prevent effective communication especially in diverse
The author has tried to convey the message by presenting various situation in the story that the manager/leader should have sense to observe the requirement and be flexible in adopting various techniques of management efficiently
The success of the organization depends on how the leaders utilize their management and leadership skills in the organization. Mission, vision and core values of the organization are posted everywhere in the organization to remind every stakeholder about their accountability and responsibility in accordance to the corporate goals. This can’t be effective without successful leadership approach. Effective leader must know how, when and where to communicate the shared vision of the organization to its stakeholders. The goal is to align personal values with the corporate values to reach optimum level of satisfaction towards the work, and the company expectations to its stakeholders. Ineffective leaders are not capable of employing this. They are not capable of employing management by objective or the ability of the managers to align the objective of the all the units and departments of the organization into the organizational goals and values. MBO starts with setting organizational objectives, followed by cascading objectives down to employees-cascading objectives down to employees requires adoption of SMART approach to ensure that goals are attainable and accountable (Mindtools, 2014)
...nd learn to move through each stage successfully it can set organizational standards to new highs. Every business professional should want to keep a copy of these models in his desk because of the growing dependence of teams in organizations. After all, no one wants to be on the losing team. The ineffective team gives no pleasure or feeling of accomplishment to anyone involved!
The theory suggests that the nature and quality of the company’s leaders is an important factor of the performance and job satisfaction of their subordinates (Glisson 1989). The theory implies that managers while in control need to be capable of maintaining cooperation from his or her employees. In this type of leadership style, the employees would be encouraged to share opinions and ideas. Staff would feel engaged in decision-making and creativity would be rewarded. The leader would be flexible, open to communication, and respectful of new
A healthy flow of upward and downward communication ensures that the communications between managers and employees is complete. For example, in 2010, Kroger surveyed over 200 thousand employees in its “Associate First Tracker survey” and found the feedback both invaluable and “humbling.” Kroger then communicates the findings with their employees who participated which will then generate a new dialog in regard to what the next steps should be (Orgel, 2010). The final channel of communication is the use of horizontal communications between coworkers. This can...
One of the main objectives of an organization is to beat its counter part in our possible way. In order for an organization to insure that they must be good at leading, planning, organizing and controlling their resources and materials to accomplish performance objectives. In other words management. There are four main types of management, Classical, Behavioural, Quantitative and now the Modern Approach to Management. The Modern Approach states that there is no one good way of management. A successful organization utilizes all the types of management. A good example of this is the movie Lean on Me, starring Morgan Freeman as Joe Clark, the protagonist of the movie. Joe is a very talented teacher, who takes a lot of pride in his work, but due to certain events (budget cuts), he has to make some very key decisions upon his future at East Side High, New Jersey. After the resignation of Joe Clark, things go back to worse at East Side High, so after 20 years Joe is once again called upon to take the duty of the principal of this once great school. His goal was to accomplish a 75% average on the state's basic skills test. This goal might be easy at any school, but then again East Side High was not just another school. The previous year the score was 33%. The school was filled with drug dealer, crime, graffiti and other things. Therefore it required a miracle to increase the school's literacy average by approximately 40%.
It is this capability of the management to cultivate communication that is important towards effective engagement with the employee (Albrech, 2011). It is not just a one-sided affair of a company engaging employee, but also mutual loop where the employee is also engaging the company. After all, it takes two hands to clap. “Voice must be approached in a genuine and authentic way, and treated as more than just a cosmetic exercise. An authentic use of voice means that when the employee is invited to speak up, the company in return will both listen and will respond to what the employee says, even if just to explain why they cannot carry out a request for change. Feedback is vital and action must be seen to follow.” (Dromey et al, 2012, p.17).
For operations management to be successful, the function of the operation must be first be defined. The degree to which this is achieved is a measure of effectiveness, the key objective of operations management. Efficiency is less important since there is no point in which carrying out an irrelevant, or worse damaging, activity effectively. Effectiveness means achieving objectives, efficiency means consuming minimum resources. While both are desirable, the former is of overriding importance.
In business, the effectiveness of an organization rests on the ability of the management to interact with its employees and to motivate the wo...
Communication is a very important aspect in leadership. It involves the ability of managers and other leaders in an organization to engage employees through effective listening and understanding of any issues that may be making it difficult for them to realize their full potential. The need for good communication capabilities in the workplace is to make sure that leaders give employees enough time to air their opinions before any binding directions are made. It is always necessary for leaders to remain mindful of the manner in wh...
Communication in the workplace is very important for employees and companies and through this the company is effective and achieve its objectives. This reduces miscommunication and poor communication. Thus increasing the spirit of cooperation and commitment. Thus increasing the productivity of the organization. When the manager talks with the staff feel the value and understanding this leads to an increase in job satisfaction. Of course when you find people who have team spirit and collaborators, this helps the manager and employees feel that they have one goal to achieve.
Operations management strategies play an important role in any organization to achieve organizational goals. An organization uses these operations strategies to maintain and control all its operations...
A study by University of East London shows that the concept of communication is immeasurable in modern management, and it seeks to meet clear understanding between manager and all the employees. It explains that employee communication is the exchange and clear provision of information, commands and directions between management and employees. And it makes the organization to work properly and employees to be well aware about their responsibilities and duties. (University of East London, 2009)