Benefits or Advantages of MBO Process
The benefits or advantages of blogspot.com//search?q=management-by-objectives-mbo-peter">MBO procedure are depicted inwards the moving painting below.
1. Better utilisation of resources
In MBO, at that topographic point is optimum utilisation of physical, fiscal together with human resources for achieving the objectives.
2. Development of personnel
MBO helps to educate together with develop the subordinate managers. It improves their skills inwards blogspot.com//search?q=management-by-objectives-mbo-peter">planning, blogspot.com//search?q=management-by-objectives-mbo-peter">decision making, blogspot.com//search?q=management-by-objectives-mbo-peter">controlling, directing, blogspot.com//search?q=management-by-objectives-mbo-peter">leadership, etc. So these managers are ready for advertisement to higher posts.
3. Makes planning effective
In MBO, the objectives are rattling clear. So, viable plans tin last made for achieving these objectives. Therefore, MBO makes planning effective.
4. Better squad work
The superior together with subordinate managers run together for fixing objectives together with monitoring the performance. This overall improves their relationship, together with they run equally a team.
5. Concentration on fundamental termination areas
In MBO, objectives are fixed for the Key Result Areas (KRAs). All the plans are made for the KRAs. Therefore, wasteful activities are avoided.
6. Objective evaluation
In MBO, the objectives are tangible together with measurable. The actual functioning of the subordinate tin last accurately compared alongside the objectives. So, an objective evaluation is possible without whatsoever favour to anyone.
7. Result oriented
MBO is a termination oriented. It gives to a greater extent than importance to the termination i.e. achieving of objectives. It gives less importance to activities together with methods. In fact, MBO is too called Management By Results.
8. Sound organisational structure
In MBO system, the blogspot.com//search?q=management-by-objectives-mbo-peter">organisational structure is rattling sound. This is because it is periodically reviewed, together with necessary changes are made to adapt the needs of the company.
