Q.2. Describe the benefits of Management by Objectives
Benefits of Management by Objectives
1. Balanced Stress on Objectives
Management by Objectives forces managers to set objectives with balanced stress on key result areas. Thus, crisis conditions are avoided to take place in the organisation.
2. Better Managing
Management by Objectives forces managers to think about planning for results, rather than merely planning activities or work. Managers are required to ensure that the targets are realistic and needed resources are made available to subordinates to achieve the targets. Clearly set objectives for the subordinates serve as evaluation standards as well as motivators for them. Thus, Management by Objectives results in improvement in managing.
3. Better Organizing
The positions in the enterprise can be built around the key result areas. Managers are required clarifying organizational roles and structures. Hence better organizing.
4. Greater Employee Involvement and Commitment
If Management by Objectives programme is installed in an organization, people are not just doing work, following instructions and waiting for guidance and decisions from “above” and the superiors do not dictate things. They are now individuals with clearly defined goals, which have been formalized through their own participation in the process. Moreover, they fully well understand the areas of their discretion – their authority. They are also confident of getting needed help from their superiors. There is clarity of roles. These elements together make for a feeling of greater personal commitment on the part of the subordinates. They become more enthusiastic in attaining the targets. There is high motivation; there is high morale too.
5. Orderly Growth of Organization
Management by Objectives provides for the maintenance and orderly growth organization by means of predetermined set of objectives for everyone involved. It is also provides in measurement of what is actually achieved. The progress and even the tenure of all responsible managers are dependent upon their producing the results. Management by Objectives emphasizes the ability, skill and achievement of managers rather than their personality. Thus, the orderly growth and development of the organisation is ensured.
6. Development of Effective Controls
Management by Objectives not only sharpens the planning, but also develops effective controls. It specifically provides for periodic reviews and annual performance appraisals serving as the needed feedback for further streamlining the objectives or targets. It makes possible for a manager to control his own performance, high degree of self-control resulting in stronger motivation. Control from “above” is substituted by control from “self” Management by Objectives facilitates coordinated effort and teamwork.
7. Generating of an Ideal Atmosphere
Douglas McGregor says. “The motivation, the potential for development, the capacity for assuming responsibility, the readiness to direct behaviour toward organisation goals are all present in people. Management does not put them there. The essential task of management is to arrange organizational conditions and methods of operations so that people can achieve their own goals best by directing their own efforts towards organizational objectives.” This is an ideal atmosphere suitable for better industrial relations and ensured success of the enterprise.
8. Objective Appraisal
Management by Objectives provides a scientific basis for evaluating a subordinate’s performance, because goals (standards) are jointly set by the superior and the subordinates.
1. Balanced Stress on Objectives
Management by Objectives forces managers to set objectives with balanced stress on key result areas. Thus, crisis conditions are avoided to take place in the organisation.
2. Better Managing
Management by Objectives forces managers to think about planning for results, rather than merely planning activities or work. Managers are required to ensure that the targets are realistic and needed resources are made available to subordinates to achieve the targets. Clearly set objectives for the subordinates serve as evaluation standards as well as motivators for them. Thus, Management by Objectives results in improvement in managing.
3. Better Organizing
The positions in the enterprise can be built around the key result areas. Managers are required clarifying organizational roles and structures. Hence better organizing.
4. Greater Employee Involvement and Commitment
If Management by Objectives programme is installed in an organization, people are not just doing work, following instructions and waiting for guidance and decisions from “above” and the superiors do not dictate things. They are now individuals with clearly defined goals, which have been formalized through their own participation in the process. Moreover, they fully well understand the areas of their discretion – their authority. They are also confident of getting needed help from their superiors. There is clarity of roles. These elements together make for a feeling of greater personal commitment on the part of the subordinates. They become more enthusiastic in attaining the targets. There is high motivation; there is high morale too.
5. Orderly Growth of Organization
Management by Objectives provides for the maintenance and orderly growth organization by means of predetermined set of objectives for everyone involved. It is also provides in measurement of what is actually achieved. The progress and even the tenure of all responsible managers are dependent upon their producing the results. Management by Objectives emphasizes the ability, skill and achievement of managers rather than their personality. Thus, the orderly growth and development of the organisation is ensured.
6. Development of Effective Controls
Management by Objectives not only sharpens the planning, but also develops effective controls. It specifically provides for periodic reviews and annual performance appraisals serving as the needed feedback for further streamlining the objectives or targets. It makes possible for a manager to control his own performance, high degree of self-control resulting in stronger motivation. Control from “above” is substituted by control from “self” Management by Objectives facilitates coordinated effort and teamwork.
7. Generating of an Ideal Atmosphere
Douglas McGregor says. “The motivation, the potential for development, the capacity for assuming responsibility, the readiness to direct behaviour toward organisation goals are all present in people. Management does not put them there. The essential task of management is to arrange organizational conditions and methods of operations so that people can achieve their own goals best by directing their own efforts towards organizational objectives.” This is an ideal atmosphere suitable for better industrial relations and ensured success of the enterprise.
8. Objective Appraisal
Management by Objectives provides a scientific basis for evaluating a subordinate’s performance, because goals (standards) are jointly set by the superior and the subordinates.
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