Advantages And Disadvantages Of MBO: Strengths And Disadvantages And Models

Main Principle The principle behind Management by Objectives (MBO) is to make sure that everybody within the organization has a clear understanding of the aims, or objectives, of that organization, as well as awareness of their own roles and responsibilities in achieving those aims. The complete MBO system is to get managers and empowered employees acting to implement and achieve their plans, which automatically achieve those of the organization. The MBO style is appropriate for knowledge-based enterpriseswhen your staff is competent.

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)

Bad leadership, especially when a top-down approach is used (14) limits the success of KM as employees proceed to follow examples given by authority figures. (100)(2001) explored HS(in full) found that KM was successful when 'instead of a top-down approach of policy making, the management adopted a middle-up-down approach '. However, it was later found that consistent effective management is key to maintain successful KM. (100) found a Lack of clear structure when implementing KM can translate to a lack of confidence from employees in management can lead to failure with employees viewing it as a 'temporary fad

One of the more important contributes to effective communication is feedback because without feedback, there is no certain way of knowing that what was said is received and understood. By implementing a feedback system, in which input is a required part of the job may help the communication within a workplace. Feedback can be positive or negative and both are important to the communication process because positive feedback encourages the sender to continue sending messages whereas negative feedback informs the sender that the receiver is not interested or pleased with what is being transmitted (Wallace & Roberson, 2009). Having a feedback system can ensure that everybody is given the opportunity to express opinions, concerns, or

Fallon & McConnell explain that having employees participate in some organizational decisions because this helps to avoid potential problems (n.d.).  Providing employees with opportunities for open discussion can help HR managers identify the areas that employees may need additional training and development.  Furthermore, employees can give their input on daily operations of the organization that executives, managers, and supervisors may not be

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’s important to know your audience so as a communicator to convey your ideas effectively. It’s also significant for any organization to establish an effective form of communication. The organization promotes open communication between employees and managers. The managers have a clear understanding of the employees’ ideas and help them to recognize their employees’ mood (Newstrom, 2015). Which was absent in the GI department, Although there were weekly meetings for all of the employees, our manager had no clue how we left about our workplace. Because there was no communication between there was only one-way communication. He talked and we listen to him. As a result of ineffective communication, our manager had no idea what his employees’ thought and mood. We weren’t sure of our manager ideas for productive of the department. The various problems can take place in an organization are as result of an ineffective commutation. The two-way communication makes easy for managers and employees accurately exchange ideas with one another (Fitzpatrick, 2010). It’s important for anyone in a manager’s position to focus on building relationships and to communicate in a way that’s easy for the employees to understand so they can feel connected with the

Input is encouraged from everyone based on the idea that employees doing the work are directly responsible for the success of the company. Management has final decision-making authority on all matters.

The more effective organization…is likely to be one that is based on innovative thinking, which is best cultivated in a diverse workforce. It is also based on teamwork, which requires mutual respect and understanding. To succeed in this environment an organization must ensure that it is tapping the knowledge and potential of its entire workforce. It must further ensure that all segments of the workforce trust each other and believe that they are treated fairly by the organization (2014, p. 394-5).

Besides that, OB can serve managers, leaders and customers’ purposes. To begin with managers who have to expand their information about the attitude and group’s behavior to improve the organization work environment and to create a business plan to have a successful organization. First of all, managers can build a better workplace by recognizing the challenges that face any organizations because of some strategies that used in business environment. For example, one of the challenges are that having a cultural diversity in organization, so managers can build the organization with different cultures which help to encourage employee to do their job well and communicate with others in appropriate way. Secondly, managers can measure the effectiveness and efficiency; also, they can identify the strength and weakness of the organization. According to national institutes of health, Organizational effectiveness is about each individual doing everything they know how to do and doing it well (NIH, 2004). Moreover, OB offers ways that provide ways in how managers can trust their employees’ potential and using a reward system to enhance employees’ performance. OB is helping the managers on providing some strategies such as indentifying problems by searching and gathering information to have an accurate decision.