Mbo Model Analysis

Management by Objectives (MBO) is one of the many management models that are being used. Attainable goals of an organization are the main focus of this model. It aims at achieving the best outcome using available resources in an organization. The performance of an organization will be improved by the goal of this model. The management, employees and members of the organization has to agree on the objectives to be followed. The model operates on the assumption that if the goals of the organization are the same with that of the employees, attaining these objectives will be easy. This model makes the measuring and comparison of the performance is achieved. Employees are able to see their productivity through the achieving of the set objectives.

Organizations come to existence for a purpose. Goals and objectives are set to achieve the purpose. Makro in the Metro Group and Tesco used the MBO model from February 2005 to July 2006. They used four streams of objective during this period. This paper aims at evaluating Management by Objectives a model founded by Peter Drucker. At first, let’s have a look at five steps of the MBO process and then see how it works in different types of firms. The first one is setting organizational objectives. Objectives should be determined by organizations to ensure the work is organized for easy attainment. The objectives should be clear, the goals should be measurable. This will help in identifying the targets. This prevents confusion among the employees and management. For the MBO model employees are involved in setting the objectives. The second one is to cascade the objectives to the employees. This makes sure that all the employees are informed about the goals and objectives. The objectives are clearly explained to each employee and how they will work together to achieve them. The third step is to monitor the objectives. This can be

It concentrates on employee development, management training and human motivation. The self-actualization of employees is fulfilled and provides a good working environment. There are five levels in this theory. Abraham presented the five levels using a pyramid. At the top of the pyramid is self-actualization and at the bottom are biological and psychological needs. The satisfaction of the lower level should first be fulfilled for one to move to the next. At the lower level we have biological and physiological needs which include food, air, water, sleep, sex and shelter. At an organization this is the pay that employees get. This is followed by safety needs. These are order, security, stability and law. In an organization setting this is the job security that one gets. The next one is belongingness and love needs which comes from workmates, family and other relationships. In an organization this is the type communication that takes place in the work place. Esteem needs is the next level in the hierarchy of needs. This is the managerial responsibility that on gets in the work place. The independence in the working environment which leads to the achievement of set objectives lies under this level. This will create confidence and respect among the employees. After the achievements of all the levels self-actualization is achieved. An employee realizes his or her potential and can start to seek for