Limitations Of Management By Objectives (MBO)
1) Management by Objectives (MBO):
Peter F. Drucker in his 1954 book “The Practice of Management” introduced the appraisal method called Management by objectives (MBO). It has become an effective management tool and is also known as goal setting approach to appraisal. In MBO, the supervisor and subordinate jointly identify the common objectives of the organization and set the areas of the responsibility of each individual in terms of results expected from that person. These measures are used for operating the unit as well as for appraising the performance of the employees.
In MBO, everyone in the organization gets a say in identifying goals thus making it easier for them to comprehend the way forward and their part in the job ahead. MBO also …show more content…
This is also the time to check for unanticipated problems whether within or beyond the control of the organization. Remedial action can be initiated when actual performance deviates from the standard set in the goal-setting stage. However, the key issue here is that the review must be conducted in a fair and just manner.
Reward
The reward for achieving the desired results whether monetary, commendation and/or recognition is a great motivator for repeat success.
Limitations of MBO
• Unclear and un-measurable objectives set.
• The activities involved in an MBO program can take a great deal of time and resources.
• Unrealistic goals due to the discrepancy in expectations between boss and employees when setting goals.
• MBO can be ineffective in a distrustful atmosphere between management and its employees.
2) Behaviorally Anchored Rating Scales (BARS):
The Behaviorally Anchored Rating Scales (BARS) method of appraising employees is based on specific behaviors required for each individual position in a company. It predetermines the important aspects of the performance and the best way to accomplish the outcomes. Then the real job behavior of the worker is assessed against the desired
Peter F. Drucker in his 1954 book “The Practice of Management” introduced the appraisal method called Management by objectives (MBO). It has become an effective management tool and is also known as goal setting approach to appraisal. In MBO, the supervisor and subordinate jointly identify the common objectives of the organization and set the areas of the responsibility of each individual in terms of results expected from that person. These measures are used for operating the unit as well as for appraising the performance of the employees.
In MBO, everyone in the organization gets a say in identifying goals thus making it easier for them to comprehend the way forward and their part in the job ahead. MBO also …show more content…
This is also the time to check for unanticipated problems whether within or beyond the control of the organization. Remedial action can be initiated when actual performance deviates from the standard set in the goal-setting stage. However, the key issue here is that the review must be conducted in a fair and just manner.
Reward
The reward for achieving the desired results whether monetary, commendation and/or recognition is a great motivator for repeat success.
Limitations of MBO
• Unclear and un-measurable objectives set.
• The activities involved in an MBO program can take a great deal of time and resources.
• Unrealistic goals due to the discrepancy in expectations between boss and employees when setting goals.
• MBO can be ineffective in a distrustful atmosphere between management and its employees.
2) Behaviorally Anchored Rating Scales (BARS):
The Behaviorally Anchored Rating Scales (BARS) method of appraising employees is based on specific behaviors required for each individual position in a company. It predetermines the important aspects of the performance and the best way to accomplish the outcomes. Then the real job behavior of the worker is assessed against the desired