Explain the concept of Management by objectives (MBO).

Describe
some of the successes and failures associated with MBO. How does
MBO work in your organization or any organization you are familiar
with. Discuss its advantages and limitations. Briefly describe the
organization you are referring to. Preview not available.

Ans . Management by objectives.

Managing by objectives is a dynamic system which integrates the
company’s need to achieve its goals for profit and growth with the
manager’s need to contribute and develop himself. According to George.
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MBO work in your organization advantages and limitations

The process of managing by objectives revolves around the setting up of
organisational goals and the goals of various divisions and subdivisions.
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It is a never ending process. The continuous nature of the process of

MBO not only ensures sustained concentration of efforts towards
organisational objectives, but also helps in modifying objectives to suit
the changed situations. The steps in MBO are described below :
Setting of Objectives. Preview not available.

The first step while installing the system of `Management by Objectives'

in an organisation is to establish verifiable objectives for the
organisation and for various positions at various levels. Preview not
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In order to set the objectives of the enterprise, a detailed assessment has

to be made of the various resources at its disposal. A market survey
must be conducted to know what types of goods and services are
required by the community. Proper forecast should be made to estimate

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the demand and the business conditions in the country. Preview not
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This detailed analysis would lead to highlighting of desirable objectives

both long-range and short-range. An attempt should be made to set
specific goals in various key areas on which the survival and growth of
the business depends. These are the objectives which the top
management will tend to achieve.