Needless to day, management is the process by which any organization tries to achieve its business goals and objectives with the utilization of the available resources skillfully and efficiently. By the fixing an objective, the management tries it?s best to achieve for the betterment of the organization and thus the whole process is known as the Need of management by objective in the context of management.
In other words, we can say that management by objective is a systematic and organized process, which instruct the entire management to focus on the goals, which are achievable. Apart from this, it also allows the process to achieve the all-possible results with the utilization of the available resources.
In fact, in a management process, the concept of Management by Objective is closely connected with the theory of planning, which is the important condition for the better management. Planning is the process, which shows the technique and tricks to achieve the goals of organization with skillfully and efficiently.
Need for MBO for a organization
Results essential, not activity: It is the MBO, which provides the opportunity to encourage the employee to achieve the targets and objective skillfully and efficiently. It always concentrates on the results and it has nothing to do with the activities.
Encourages employees: MBO is the process, which inspires the employee and also helps in aware them about their duties and responsibilities. It also encourages them about the expectations regarding the company.
Communication and Positive environment: MBO helps the employee in creating a better communication among them so that the target and objective can be achieve in a proper way. It also provides a positive environment among the employee to develop a better work culture.
Limitations of MBO: However achieving the targets and objectives are the basic aim for any management process and employee are encouraged to do so by the management. Obviously achieving the objectives with the proper utilization of available resources is the aim for MBO, it must be in mind that employee should not be treated as a machine to achieve the goals and objectives.