{"id":3011,"date":"2019-12-16T15:33:31","date_gmt":"2019-12-16T15:33:31","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3011"},"modified":"2019-12-16T15:33:31","modified_gmt":"2019-12-16T15:33:31","slug":"management-by-objectives","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/management-by-objectives\/","title":{"rendered":"MANAGEMENT BY OBJECTIVES"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_72 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/management-by-objectives\/#MANAGEMENT_BY_OBJECTIVES\" title=\"MANAGEMENT BY OBJECTIVES\">MANAGEMENT BY OBJECTIVES<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/management-by-objectives\/#FEATURES_OF_MBO\" title=\"FEATURES OF MBO\">FEATURES OF MBO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/management-by-objectives\/#PROCESS_OF_MBO\" title=\"PROCESS OF MBO\">PROCESS OF MBO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/management-by-objectives\/#BENEFITS_OF_MANAGEMENT_BY_OBJECTIVES\" title=\"BENEFITS OF MANAGEMENT BY OBJECTIVES\">BENEFITS OF MANAGEMENT BY OBJECTIVES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/management-by-objectives\/#LIMITATIONS_AND_WEAKNESSES_OF_MBO\" title=\"LIMITATIONS AND WEAKNESSES OF MBO\">LIMITATIONS AND WEAKNESSES OF MBO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/management-by-objectives\/#SUGGESTIONS_TO_MAKE_MBO_EFFECTIVE\" title=\"SUGGESTIONS TO MAKE MBO EFFECTIVE\">SUGGESTIONS TO MAKE MBO EFFECTIVE<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"has-text-align-center wp-block-heading\" id=\"management-by-objectives\"><span class=\"ez-toc-section\" id=\"MANAGEMENT_BY_OBJECTIVES\"><\/span>MANAGEMENT BY OBJECTIVES<span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p>Management by Objectives is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. The concept of MBO was coined by <strong>Peter F Drucker in 1954. <\/strong><\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background\"><strong>ACCORDING TO HAROLD KOONTZ<\/strong><\/p>\n\n\n\n<p>\u201cMBO is a comprehensive managerial system that integrates\nmany key managerial activities in a systematic manner, consciously directed towards\nthe effective and efficient achievement of organizational objectives.\u201d<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background\"><strong>ACCORDING TO GEORGE R TERRY<\/strong><\/p>\n\n\n\n<p>\u201cIt is a system in which each employee participates in\ndetermining personal objectives as well as the means by which he or she hopes\nto achieve these objectives. It makes each employee a manager of his or her own\nparticular.<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background\"><strong>ACCORDING TO GEORGE S. ORDIORUE<\/strong><\/p>\n\n\n\n<p>\u201cThe system of management by objectives is described as a\nprocess whereby the superior and subordinate managers of an organization jointly\nidentify its common goals, define each individual\u2019s major areas of\nresponsibility in terms of results expected of him, and use these measures as a\nguide for operating the unit and assessing of contribution of each of its\nmembers.\u201d<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background\"><strong>ACCORDING TO SK CHKRAVARTY <\/strong><\/p>\n\n\n\n<p>\u201cMBO is result-centered, non-specialist, operational\nmanagerial process for the effective utilization of material, physical and\nhuman resources for the organization by integrating the individual with the organization\nand organization with the environment.\u201d<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background\"><strong>ACCORDING TO TERRY AND FRANKLIN<\/strong><\/p>\n\n\n\n<p>\u201cA managerial objective is the intended goal that prescribes\ndefinite scope and suggests direction to the planning efforts of a manager.\u201d<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background\"><strong>ACCORDING TO PROF. REDDIN<\/strong><\/p>\n\n\n\n<p>\u201cMBO is the establishment of effectiveness areas and\neffectiveness standards for managerial positions and the periodic conversion of\nall this into measurable time bound objectives linked vertically and\nhorizontally with future planning.\u201d<\/p>\n\n\n\n<p>So, MBO is a management system in which each member of the organization\neffectively participates and involves himself. This system gives full support\nto the individual strength and responsibility. MBO harmonizes the goal of an individual\nwith the organization\u2019s goal. It creates self-control and motivates the manager\ninto action before somebody tells him to do something.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"features-of-mbo\"><span class=\"ez-toc-section\" id=\"FEATURES_OF_MBO\"><\/span>FEATURES OF MBO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Peter F Drucker<\/strong> who coined the term MBO defines its following features:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Some form of corporate or unit plan by which\nobjectives are laid down;<\/li><li>Measurable and time bound objectives for each\nmanagerial position;<\/li><li>Objectives for each position are established by\nthe job-holder and boss together;<\/li><li>Mutually agreed job improvement plans to\nfacilitate the accomplishment of objectives; <\/li><li>Periodic reviews and updating, whenever\nnecessary, of the mutually agreed objectives by the boss and subordinates\ntogether;<\/li><li>Such mutually agreed objectives form the basis\nof performance evaluation;<\/li><li>Sharp definition of responsibilities and\nauthorities for positions, which brings clarity in the organizations;<\/li><li>Aligning and linking of objectives up, down and\nacross. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<p>The other features of MBO are as follows:<\/p>\n\n\n\n<p><strong><em>MANAGEMENT PHILOSOPHY<\/em><\/strong><\/p>\n\n\n\n<p>MBO is not only a technique but a philosophy to the <a href=\"https:\/\/commerceiets.com\/process-of-management\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"management (opens in a new tab)\">management<\/a>. Technique is applicable only in some areas but philosophy or approach guides and influences every aspect of management. MBO is an approach which includes various techniques of better management.<\/p>\n\n\n\n<p><strong><em>COLLECTIVE PARTICIPATION<\/em><\/strong><\/p>\n\n\n\n<p>In MBO, the objectives are set by all individuals\ncollectively after a thorough discussion. These objectives become the targets\nwhich are to be achieved by all. The review of the objectives is also done\ncollectively.<\/p>\n\n\n\n<p><strong><em>YARDSTICK TO MEASURE PERFORMANCE<\/em><\/strong><\/p>\n\n\n\n<p>In MBO, the objectives are set at corporate, departmental as\nwell as at individual level. These objectives act as yardstick to measure the\nperformance of the employees. The actual performance is measured against the\nstandard performance and deviations are found out and then the corrective\nactions are taken.<\/p>\n\n\n\n<p><strong><em>PROVIDES A REGULAR REVIEW OF PERFORMANCE<\/em><\/strong><\/p>\n\n\n\n<p>MBO provides a regular review of the performance. This\nreview is normally held once in a year. It focuses on initiative and active\nrole of the manager who is responsible for achieving the objectives. The review\nis future oriented and provides a basis for planning and corrective action.<\/p>\n\n\n\n<p><strong><em>PROVIDE BASIS FOR DECISION MAKING<\/em><\/strong><\/p>\n\n\n\n<p>The objectives in MBO provide guidelines for appropriate\nsystem and procedures. The degree of delegation of authority, fixation of\nresponsibility, allocation of resources etc. can be decided on the basis of\nobjectives of various individuals. These objectives also become a basis of reward\nand punishment in the organization.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"process-of-mbo\"><span class=\"ez-toc-section\" id=\"PROCESS_OF_MBO\"><\/span>PROCESS OF MBO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>DEFINING ORGANISATIONAL OBJECTIVES<\/em><\/strong><\/p>\n\n\n\n<p>In the first step in the process of MBO, the <a href=\"https:\/\/commerceiets.com\/objectives\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"objectives (opens in a new tab)\">objectives<\/a> are set up. The long term objectives are set by undertaking the corporate <a href=\"https:\/\/commerceiets.com\/planning\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"planning  (opens in a new tab)\">planning <\/a>by the top management at high level. Then secondary objectives are set by undertaking the <a href=\"https:\/\/commerceiets.com\/types-of-planning-in-business\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"strategic planning (opens in a new tab)\">strategic planning<\/a> to achieve and support the achievement of long term organizational goals.<\/p>\n\n\n\n<p><strong><em>GOALS OF EACH SECTION<\/em><\/strong><\/p>\n\n\n\n<p>After determining the goals of each section, the objectives\nfor department, divisions or sections are laid down. The objectives laid down\nare made time bound i.e. the time is specified in which the objective is to be\nachieved. The goals or objectives are expressed in meaningful, precise and\nconcise form.<\/p>\n\n\n\n<p><strong><em>FIXING KEY RESULT AREAS<\/em><\/strong><\/p>\n\n\n\n<p>Key result areas are fixed on the basis of the\norganizational objectives premises. Key Result areas are arranged on a priority\nbasis. Key result areas indicate the strength of the organization. The example\nof Key result areas are profitability, market share, innovation etc.<\/p>\n\n\n\n<p><strong><em>SETTING SUBORDINATE OBJECTIVES OR TARGETS<\/em><\/strong><\/p>\n\n\n\n<p>The objectives of each subordinate or individual are fixed.\nIt is preferable to fix the objectives at lower level in quantitative terms. There\nshould be a free and frank discussion between the superior and his subordinates.\nSubordinates are induced to set standards by themselves by giving an opportunity.\nIf subordinates are allowed to do so, they may set high standards and the\nchances of their accomplishment are higher. In this way, the objectives or\ntargets of subordinates are fixed.<\/p>\n\n\n\n<p><strong><em>MATCHING RESOURCES WITH THE OBJECTIVES<\/em><\/strong><\/p>\n\n\n\n<p>The objectives are framed on the basis of availability of\nresources. It some resources are not adequately available, the objectives of\nthe organization are changed accordingly. So there is a need for matching the\nresources with the objectives. Next, the available resources should be properly\nallocated and utilized.<\/p>\n\n\n\n<p><strong><em>PERIODIC REVIEW MEETINGS<\/em><\/strong><\/p>\n\n\n\n<p>The superiors and subordinates should hold meetings\nperiodically in which they discuss the progress in the accomplishment of\nobjectives. The fixed standards may be changed in the light of the progress. But\nthe basic conditions do not change. The periodical review meeting is held\nduring the period set for achieving the objectives.<\/p>\n\n\n\n<p><strong><em>APPRAISAL OF OBJECTIVES<\/em><\/strong><\/p>\n\n\n\n<p>At the end of fixed period for achieving the objectives,\nthere should be a discussion between superior and subordinates. This discussion\nis to be related with the comparison of performance of employee against the set\nstandards. The superiors should take corrective action if it founds necessary.<\/p>\n\n\n\n<p>According to <strong>EARL P. STRONG<\/strong><\/p>\n\n\n\n<p>\u201cOnly by bringing company objectives down from long range to\nshort range, from company level to individual position level, from\npre-performance to post-performance and by penalizing for failure and rewarding\nfor success can the effective programme of managing by objectives can be accomplished.\u201d<\/p>\n\n\n\n<p>The superiors should identify the reasons for failure of\nachieving objectives. The problems faced by the subordinates should be\nidentified and steps should be taken to tackle such problems.<\/p>\n\n\n\n<p><strong><em>REAPPRAISAL OF OBJECTIVES<\/em><\/strong><\/p>\n\n\n\n<p>An organization is living in a dynamic world. There are a\nlot of changes within a short period. The survival and growth of the modern\nbusiness organization largely depends upon putting up with the changing\nconditions. So, the top management executive should review the organization\u2019s\nobjectives to frame the objectives according to the changing situation.<\/p>\n\n\n\n<p>According to <strong>NEWMAN, SUMMER and WANNEN <\/strong><\/p>\n\n\n\n<p>\u201cEvery manager must frequently reappraise emphasis he gives\nto his various objectives. The job is like that of a captain of a large ship\nwho is continually changing his speed and direction in relation to his present\nposition, tides, winds and other conditions.\u201d<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"benefits-of-management-by-objectives\"><span class=\"ez-toc-section\" id=\"BENEFITS_OF_MANAGEMENT_BY_OBJECTIVES\"><\/span>BENEFITS OF MANAGEMENT BY OBJECTIVES<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following are the objectives of Management by Objectives:<\/p>\n\n\n\n<p><strong><em>EFFECTIVE PERFORMANCE<\/em><\/strong><\/p>\n\n\n\n<p>MBO aims at managing the things by setting up the objectives\ncollectively. This creates the cordial environment in the organization and\ninduces the employees to accomplish the objectives. By doing this MBO ensures\neffective performance of the employees in the organization.<\/p>\n\n\n\n<p><strong><em>TEAM SPIRIT<\/em><\/strong><\/p>\n\n\n\n<p>MBO is a dynamic change in the management field. The\nobjectives are set here after inviting the opinions and suggestions and ideas\nof all the superiors and subordinates. The discussion between all the superiors\nand subordinates for setting the objectives create a sense of connectivity among\nthem. This promotes the team spirit in the workplace.<\/p>\n\n\n\n<p><strong><em>MOTIVATION<\/em><\/strong><\/p>\n\n\n\n<p>As the decisions in MBO approach are taken collectively by\nthe superiors and subordinates, the participation of the subordinates motivates\nthem to work hard and give their best. This implies that the MBO approach\ninduces the employees to give their best.<\/p>\n\n\n\n<p><strong><em>DELEGATION OF AUTHORITY<\/em><\/strong><\/p>\n\n\n\n<p>MBO helps in fixation of the responsibility on the basis of\nthe objectives laid down and provides sufficient scope for a proper balance\nbetween authority and responsibility. All the authority required to discharge the\nduties is delegated to all the employees and up to the level possible. All this\nleads to the better delegation of authority and the decentralization to the\nmaximum possible extent.<\/p>\n\n\n\n<p><strong><em>EFFECTIVE DECISIONS<\/em><\/strong><\/p>\n\n\n\n<p>The decisions taken in such an organization with the\nparticipation of workers, managers and administration are once best implemented\nand leads to increased efficiency of the management and the organization as a\nwhole.<\/p>\n\n\n\n<p><strong><em>EFFECTIVE MANAGERIAL DEVELOPMENT<\/em><\/strong><\/p>\n\n\n\n<p>Under this system, individual objectives are determined for\nall the managers. They are held responsible for the attainment of their\nindividual objectives. It develops a feeling of responsibility in the managers\nand consequently the managerial ability and efficiency increases.<\/p>\n\n\n\n<p><strong><em>COORDINATION AND EFFECTIVE CONTROL<\/em><\/strong><\/p>\n\n\n\n<p>With the unified objectives and sub-objectives, MBO helps in\ncoordinating the activities of different sections and departments. Periodical\nview of the plans and objectives and evaluation of performance, comparison of\nactual performance with the standards set are the basic components of the MBO. These\nbecome the basis of effective control and better planning.<\/p>\n\n\n\n<p><strong><em>REWARDS ON THE BASIS OF PERFORMANCE<\/em><\/strong><\/p>\n\n\n\n<p>In the organization that adopts the MBO approach the\nindividual objectives are also set. The employees who achieve the targets set\nget the rewards for the same. This induces them to work hard in the direction\nto achieve rewards. Rewards are given in the form of recognition, prestige,\nbonus, profit sharing, promotion etc.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"limitations-and-weaknesses-of-mbo\"><span class=\"ez-toc-section\" id=\"LIMITATIONS_AND_WEAKNESSES_OF_MBO\"><\/span>LIMITATIONS AND WEAKNESSES OF MBO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The concept of MBO is in developing stage. So it carries\nsome weaknesses in it which are as follows: <\/p>\n\n\n\n<p><strong><em>DIFFICULTY IN DETERMINATION OF OBJECTIVES<\/em><\/strong><\/p>\n\n\n\n<p>The first step in the process of Management by Objectives is determination of objectives which is not so easy. The objectives are set differently at corporate level, department level and then on individual level. It is difficult to reconcile the interests and goals of everyone in one corporate goal. So this proves a serious limitation of MBO.<\/p>\n\n\n\n<p><strong><em>PROBLEM OF COORDINATION<\/em><\/strong><\/p>\n\n\n\n<p>Business is nothing without its working employees. Every employee\nhas different goal, different perspective of viewing things. There may be\nconflicting interests of the various employees due to which management confront\nthe problem of coordination among the work force.<\/p>\n\n\n\n<p><strong><em>TIME CONSUMING TECHNIQUE<\/em><\/strong><\/p>\n\n\n\n<p>MBO is time consuming technique. The <a href=\"https:\/\/commerceiets.com\/setting-objectives-in-management\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"setting of objectives (opens in a new tab)\">setting of objectives<\/a> requires thorough analysis of the business environment. The setting of objectives at various levels is also time consuming. The recording of performance and its comparison and periodical evaluation is also considered as wastage of time.<\/p>\n\n\n\n<p><strong><em>LACK OF COMPETENT AND TRAINED MANAGERS<\/em><\/strong><\/p>\n\n\n\n<p>Management is emerging as a profession. It is not emerged as\na profession till yet in the true sense. In present times, it becomes difficult\nto find the trained managers who can effectively employ this approach as well\nas ensure the economy of operations in the concern.<\/p>\n\n\n\n<p><strong><em>LACK OF COOPERATION BETWEEN SUPERIORS AND SUBORDINATES<\/em><\/strong><\/p>\n\n\n\n<p>The lack of cooperation between the superiors and the\nsubordinates leads to the failure of MBO approach. The superiors consider then\nwell trained and generally ignore and underestimate the opinions and\nsuggestions of the subordinates. This creates frustration among the\nsubordinates and this leads to the conflicts among both working groups.<\/p>\n\n\n\n<p><strong><em>PRESSURE UPON THE EMPLOYEES<\/em><\/strong><\/p>\n\n\n\n<p>The management by objectives creates pressure on the\nemployees to achieve the targets upon that adversely affect their performance.<\/p>\n\n\n\n<p><strong><em>SACRIFICE OF QUALITATIVE OBJECTIVES<\/em><\/strong><\/p>\n\n\n\n<p>MBO focuses on setting and attainment of quantitative\nobjectives only. Objectives in terms of quality do not come in the purview of\nthe management by objectives and this proves a serious limitation of this\napproach.<\/p>\n\n\n\n<p><strong><em>LACK OF FLEXIBILITY<\/em><\/strong><\/p>\n\n\n\n<p>The changing business environment is full of uncertainties\nand complexities. MBO aims at determining objectives only. But in practical the\nchanges are so frequent that it is very difficult to change the objective set. Thus\nlack of flexibility is a limitation of MBO.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"suggestions-to-make-mbo-effective\"><span class=\"ez-toc-section\" id=\"SUGGESTIONS_TO_MAKE_MBO_EFFECTIVE\"><\/span>SUGGESTIONS TO MAKE MBO EFFECTIVE<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following suggestions should be considered to make the\nMBO implementation effective:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Objectives must be set by keeping in view the resources available with the enterprise.<\/li><li>Objectives must be determined jointly by the supervisors and subordinates. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/li><li>Objectives must be feasible.<\/li><li>Objectives must be convincing to all concerned.<\/li><li>Objectives must be time bound.<\/li><li>Objectives must be stimulating.<\/li><li>Objectives must be determined considering the economic as well as industrial policy of the government.<\/li><li>Team spirit should be developed through collective determination of objectives, policies and procedures.<\/li><li>Effective system of communication must be developed at all levels of management.<\/li><li>System of performance evaluation should be there.<\/li><li>Plans and programmes should be periodically reviewed.<\/li><li>Efforts of employees should be properly rewarded.<\/li><li>Objectives should be ranked on the basis of their performance. \u00a0\u00a0\u00a0\u00a0<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>ALSO STUDY:<\/strong><\/td><td><strong>ALSO STUDY:<\/strong><\/td><td><strong>ALSO STUDY:<\/strong><\/td><td><strong>ALSO STUDY:<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/management\/\">Management<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives-of-management\/\">Objectives of management<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/functions-of-management\/\">Functions of management<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-management\/\">Process of management<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/management-is-an-art\/\">Management as an art<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/management-as-a-science\/\">Management as a science<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/management-as-profession\/\">Management as a profession<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/joint-stock-company\/\">Company<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/incentive-plans\/\">Incentive plans<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/\">14 principles of management by Henry Fayol<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/principles-of-scientific-management\/\">Principles of scientific management<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scientific-management\/\">Scientific management<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/what-is-work-study\/\">Work study<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/time-study\/\">Time study<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/motion-study\/\">Motion study<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/method-study\/\">Method study<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/planning\/\">Planning<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/importance-of-planning-in-management\/\">Importance of planning in management<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/benefits-of-planning-in-business\/\">Advantages of planning in business<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-planning\/\">Process of planning<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/types-of-planning-in-business\/\">Types of planning in business<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/setting-objectives-in-management\/\">Setting objectives in management<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives\/\">Objectives<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/smart-test\/\">SMART test<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/management-by-objectives\/\">Management by objectives<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/policies-in-business\/\">Policies in Business<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/management-and-business-administration\/\">Management and business administration<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/functional-areas-of-management\/\">Functional areas of management<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/limited-liability-partnership\/\">Limited Liability partnership<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-llp-and-company\/\">LLP Vs company<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-llp-and-partnership\/\">LLP vs Partnership<\/a><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"512\" height=\"152\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg\" alt=\"MANAGEMENT BY OBJECTIVES\" class=\"wp-image-4836\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg 512w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1-300x89.jpg 300w\" sizes=\"auto, (max-width: 512px) 100vw, 512px\" \/><figcaption>MANAGEMENT BY OBJECTIVES<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>MANAGEMENT BY OBJECTIVES Management by Objectives is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. The concept of MBO was coined by Peter F Drucker in 1954. ACCORDING TO HAROLD KOONTZ \u201cMBO is a comprehensive managerial system that integrates many&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/management-by-objectives\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;MANAGEMENT BY OBJECTIVES&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3018,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[68],"tags":[222,223,224,225,226],"class_list":["post-3011","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-management","tag-benefits-of-management-by-objectives","tag-features-of-mbo","tag-limitations-and-weaknesses-of-mbo","tag-process-of-mbo","tag-suggestions-to-make-mbo-effective"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3011"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3011\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3018"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}