Prerequisites for installing MBO programme

Some of the prerequisites for installing of MBO programme are: 1. Purpose of MBO shoould be clearly defined. 2. Top management support for using objectives to plan and control is essential. 3. Systematic traing is required in the organisation for disseminating the concepts and philosophy underlying MBO. 4. Success with MBO requires a commitment on the past of each individual involved in this type of system. 5. Feedback is an essential ingredient in sustained learning and improvement in situations. 6. It must be carried...

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Problems and Limitations of MBO

Some of the common problems of MBO are as follow: 1) Time and Cost:                      It is a process which requires large amount of the most scarce resource in the organisation and time of the senior managers. Sometimes managers get frustrated and feel overburdened. 2) Failure to teach MBO Philosophy:                      Management often fail to understand and appreciate this new approach. MBO demand rigorous analysis...

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Benifits or merits of MBO

1) Better Managing:                                  MBO helps in better managing the organisational resources and activities. Resources and activities are put in such a way that they result into better performance in the five ways,     a) The relationship between clarity of objectives and improvement of performance is the cornerstone of MBO philosophy.    b) Clarity of roles, including the areas of authority and responsibility,...

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