(2) Explain how an MBO program works and describe the six steps involved in this type of program?
Management by objective approach enabling the management to set precise aims to be achieved in the future and repeatedly asking what is to be done, obtainable as a partial response to the question of business vitality and creatively (Drucker et al., 2008). The managers of a different organization have been confronted to create outcomes in a fast changing environment. The MBO is very official with reviews that are rescheduled; assessment methods are set and precise formats in which goals and measurements are reviewed.
MBO needs the manager to set precise, quantifiable goals with every employee and then occasionally grow towards these goals. In addition, it requires engagement in a diffident and comfortable MBO program with juniors by mutually setting goals and sometimes providing feedback. The managers and the business expect change and set belligerent goals. Ever\y businesses happen for a reason and to be able to attain that resolve, the executive sets aims and purposes that are mutual to the complete business.
Dialogue is inserted by the MBO method into the procedure of scheduling and goals from one institution. The senior team conveys precise goals and measures for the junior in gathering while they also come with the goals that will help accomplish their jobs. They mutually agreed objectives, the measure of attainment, and the period to accomplish their tasks. The level of involvement of the subordinates depends on the type of organization.
The different MBO methods assist the manager’s devotion toward outcomes. It guarantees that staff is committed to precise goals and helps them come up with requirements of the future and setting of aims for reaching those desires. The approach assists the manager to have obligation and contribution from the juniors. The involvement of the subordinates allows them to feel they fit the organization providing the information. The will ensure that they achieve their goals.
There is a good mechanism and harmonization towards a goal talented. Juniors are assisted to easily meet their goals of the company. The MBO can be misused. The goals from the joint meeting can be overlooked resulting to undue pressure. Many managers have a behavior of seeing the MBO managing all the challenges. MBO approach has been ignored by obliging issues and frustrating whatever effect it has with it is designed to do. The lack of basic skills like interpersonal or knowledge enables appraising sections from leading into it getting critical.
The term MBO commonly denotes a complete and official group varied goal setting and evaluation program involving six steps as follows.
(1) Set the group's goals by establishing, the firm's strategic plan, based on business plans for next year.
(2) Set department goals, the departmental heads take the company goals by increasing profits by a certain percentage example 20% (Dessler, 2008) and, with their seniors, mutually set goals.
(3) Discuss department goals and these is undertaken by the sectional heads by deliberating the goals of the section with all juniors, regularly at a gathering. They ask each employee contributions to the section's goals.
(4) Define expected results by setting personal goals. The Unit heads and their juniors set short-range personal performance targets.
(5) Performance reviews the sectional heads review each member of staff actual and targeted performance.
(6) Provide feedback by evaluation of the progress of the staff by discussion with the sectional heads.
Dessler G., (2008) 11th edition Human Resource management
Drucker, P. F. & Maciariello, J. A. (2008). Management. New York, NY: Collins.