9.Finally, the objective in an MBO system must be intrinsically linked to anorganization’s mission statement. Every objective must help accomplishthe overall mission and the managers must “manage the mission.”
MBO in the Human Resource Management perspective
Here management set specific and measurable objectives with eachemployee and periodically discuss the latter’s progress towards these goals. Thisis a technique participatively set goals are agreed up on by the manager and theemployee, that are tangible, verifiable and measurable.MBO focuses on what must be accomplished, hence there is a goals setting andappraisal programmes involving 6 steps:1.
Set the organization’s goal
: Establish organizations set goals for thecoming year.2.
Set Departmental goals:
departmental head take broader companygoals and with their superiors they jointly set their goals for theirdepartment.3.
Discuss departmental goal:
Departmental goals are put todiscussion in a departmental meeting with the subordinates.Departmental heads require the subordinates to set their ownpreliminary goals and focus on what they can personally do to achievedepartmental goals.4.
Define expected results
: In the next step, departmental heads andsubordinates agree to set departmental and individual goals in theshort term.5.
Department heads compare each employee’sactual and targeted performance, periodically or annually. Review isconducted to assess ad reward one’s overall performance.6.
both the parties discuss and evaluate theprogress, find out the discrepancies and rectify the mistake made inthe past and strengthen the workforce for the expected target in thenext time.
I. Setting a measurable task is not an easy thing to do. It is great deal to setgoals for every levels of the organization.II. When everything goes so rigidly some qualitative aspects may be ignored(such as employee attitudes, job satisfaction etc.).III. Often superior set the goal at a frustrating high level, whereas subordinatesmay wish to have it at a comfortable level.IV. Some time short term goals may take precedence over the long term goals. The only way to overcome this problem is to allow the managers to explain, co-ordinate and guide the performance in a persuasive and democratic way.