What is Organizational effectiveness? How an organization could achieve it using MBO? Discuss the condition where MBO is effective and ineffective as a managerial technique. Give examples.
The term organizational effectiveness refers to the efficiency with which the organization achieves its goals. It means measuring the effectiveness, perfection and dedication with which the work is done in the organization and the goals are achieved. Being effective means generation of least amount of waste, high degree of productivity and generation of high quality products, thus creation of more profits.
MBO, on the other hand refers to management by objective. It is a strategic management technique where the goals and objectives for both employers as well as employees are set in collaboration and consent of both the parties. The goals to be achieved are agreed upon by both employers and employees, hence increasing the employee commitment and making them feel a part of the organization, The employees will also feel motivated and self directed to work for the completion of tasks decided and the chances of resistance reduces. Hence by following the MBO technique, organizations can achieve the overall organizational effectiveness and increase its productivity.
MBO is not always effective and sometimes it can be ineffective. MBO is best effective in the following conditions:
MBO is sometimes ineffective in the following conditions:
For example: when using MBO, it is decided that the insurance agents will be selling the insurances of Rs 300000 per month. This goal is mutually set and the employees are highly motivated to work effectively, and try hard to do the business. This is an example of effective MBO which indirectly will help in improving the overall efficiency of the organization.
Whereas, if the employees are not motivated and self directed to work, and they are not putting in efforts to sell out the insurances, then this is a clear case of ineffective MBO where the rigid and bad attitude of employees affects the efficiency of the organization, despite of using the MBO technique.
What is Organizational effectiveness? How an organization could achieve it using MBO? Discuss the condition where...
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