Management with objectives is one of the best methods of defining an organization’s objectives through consensus between workers and an organization’s management team. Unlike most conventional methods that center on the defining of an organization’s goals without consulting employees, an organization that uses MBO must engage both employees and management teams in the goal setting process. Therefore, because of the “participative goal setting” concept of MBO, MBO is a very motivating management practice, which can greatly promote the timely achievement of an organization’s goals.
One primary advantage of MBO is that, as compared to other methods of defining goals, MBO is very motivating, because, if properly applied, it increases the level of workers’ empowerment; hence, encourages high performance standards. In addition, because of its participative goal setting principle, MBO encourages high levels of employee satisfaction and dedication to their duties.
Workers in organizations which use MBO goal defining methodology do not depend on instructions, guidance, or orders from top management organs, but rather they follow objectives that they have agreed to participate in their achievement. Another advantage of MBO is that, it encourages the development of open communication channels within an organization. Open communications channels are essential in the smooth running of an organization, as it encourages timely and regular reviews, coordination, and interactions between management and workers; hence, minimizing chances of unrests occurring, because they offer a mechanism of finding solutions to conflicting issues amicably.
Further, because MBO appreciates the significance of employees in any goal setting endeavor and requires good planning and strategizing, the method can greatly improve a management team’s managing expertise. Contrary to most objective-defining methods, which emphasize on planning for activities only, MBO emphasizes on planning for both activities and results; hence, encouraging innovation in an organization.
Another advantage of MBO is that, it encourages better organizing of positions in an organization along primary result areas. When applying MBO, management teams must define clearly organizational duties and structures. This promotes greatly an organization’ organization; hence, making management easy. In addition, because MBO uses a set of predetermined targets that are set in all-inclusive forums, MBO provides an organization with a maintenance and order of growth methodology. Such is the case primarily because; MBO takes into consideration the ability, skill, and innovativeness of managers, rather than their individuality.
On the other hand, MOB encourages the development of effective controls. It achieves this through encouraging periodic reviews and giving of yearly rewards to employees, as a primary mechanism of appreciating employees’ dedication to goal achievement. Moreover, MBO creates a favorable environment for growth of new insights and potential development, because of its principle of dedicating and assigning of different duties to different employees, depending on their skills or level of expertise. Therefore, MBO encourages specialization, although such specialization must match with an organization’s goals or objectives.
Last but not least, MBO is an important organizational tool of classifying goals, as all employees are given an equal opportunity of airing their views. This is an important tool during the role-segregating process, as it defines the necessary parameters to use in assigning duties. Lastly, all employees’ need are considered in the decision making process, MBO minimizes chances of conflicts occurring in an organization, because of the numerous differences that may exist between employees in terms of personalities, goals, and views. This is important to the overall wellbeing of an organization, because it offers a favorable environment for increased productivity.