Question

Describe the elements of a good MBO program, including 5 key elements and Explain the potential problems of the MBO approach How can Managers Plan Effectively in Dynamic Environments?

Answer 1

Following are the key elements involved in any MBO program

1. Central goal / objective setting

In this step the objectives of the organization is defined and verified by the central management in consultation with the other managers. for this detailed analysis is made with the available resources, proper market research and business forecast is done before setting the objective. The management set long term and short term objectives

2. Departmental and Individual goal setting

This step is for setting objectives on a departmental level .Top management discuss the objectives with the department heads so that the objectives should be mutually agreed upon, departments set its short term and long term objectives with the approval of top management. After this subordinates work with their respective manager set their individual goals with relation to organisational goal then individual member is also consulted by the subordinates regarding this objectives In this way each member of an organization is involved in goal setting

3. Revision of Job Descriptions

Sometimes the goals of an individual is revised, it will cause the revision of the job description of various position which in turn change or revise the whole organisational structure,  now organisational chart and manual is also ammended and then new objectives and responsibility is defined in respect to various job. the relationship of one job with another should clearly be established.

4. Goals matching and resource allocation

setting of goal cannot be done unless tools and resources required to achieve the objectives are provided. subordinates should be provided with the required tools and materials to achieve goal effectively and efficiently, resources should also be allocated after consulting the subordinates.

5.Freedom of Implementation

The manager subordinates task team should be given given the freedom to decide how to utilize the resources and how to achieve the objectives. There should be minimum or no interference from the superiors as long as the team is working within overall framework of the organisational policies.

Following are some of the potential problems of the MBO approach

1. Failure to teach philosophy

manager involves in this process should have clear understanding about what he do and he should teach his subordinates that what it is, how it works, why it is being done, what role it will play in appraising performance, and above all, how all will get benefits from it.

2 Problems of goal setting

Goal setting can be a problem if proper guidelines is not provided, verifiable goal is quite a difficult to set and hence in MBO goal setter is very clear in his approach.

3. The Short run nature of goals

Under MBO , goal are generally st for short term i,e often for a quarter or less and very seldom for a year or more so the problem of over emphasizing of short term at the cost of long term range hence the superior should be assured that short term goal are designed to achieve long term plan.

4. Danger of inflexibility

In this dynamic society , sometimes goals needed to be revised or changed or requires modification but manager often hesitate to change objectives.

Manager may plan effectively in an dynamic environment by following ways:

1. Manager should focus on the ends and not the means.

2. it is to be cleared that how much outcome is to be expected and how is should be measured.

3.After how long the accomplishment is measured.

4. every should be put on same page.

5. he should be focused on determining the goals

6. make sure that low goals are not demotivating