The basic purpose of MBO for an employee to understand the roles and responsibilities
in order to, understand how their works relate to the achievement of the organization’s
objectives. MBO also places importance on fulfilling the personal goals of each
employee. The MBO method is in itself a method of motivating employees by
managerial practices that are perceived positively (commonly negotiated goals, an
autonomy in searching and using means to achieve goals, self-controlling and periodical
common controlling work done by team members). Management by objectives improves
employees’ motivation to work and to achieve organizational goals (Hoffmann-
Burdzińska and Flak,2016).
Some of the important advantages of MBO are MBO method as an effective tool in the
teamwork process. Hoffmann-Burdzińska and Flak, (2016) found the MBO process
can improve the effectiveness of teamwork. The authors added that an autonomous
teams and their role in increasing effectiveness of an organisation and simultaneously
improving competitiveness of an organisation among health care teams, most important
conclusions is team members’ engagement in achieving the goals is positively
correlated with results achieved by the team and there is a positive correlation between
group processes and team results.
Another advantage is MBO motivates persons. Individuals tend to work harder towards
goals which they accept them as their own (Schermerhorn, 1989). MBO goal setting
strategy of including subordinates attempts to insure this acceptance. When individuals
accept goals as their own increased levels of motivation are likely. Those who create,
tend to support.
Several disadvantages have been identified regarding the MBO process that is at any
level of management may be that objectives usually focus on the short-term and not the
long term (Bateman & Zeithaml, 1990). Yanagizawa and Furukawa (2016) found
supervisors’ behavior regarding goal setting in a hospital setting impacted line positions
positively regarding goal commitment and goal-attainment but not staff positions. They
indicated that "supervisor behavior increased goal-attainment behavior in staff
positions". This may be due to the dual hierarchies inherent in hospitals, namely,
administrative and medical.
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Kyriakopoulos, G. (2012). Half a century of management by objectives (MBO): A review. African Journal
of Business Management, 6(5), 1772-1786.
Schermerhorn, J. R. (1989). Management for productivity (3rd ed.). John Wiley & Sons.
Huse, E. F. (1975). Organization Development and Change (St. Paul. N: West Publishing Company.
Bateman, T. S., & Zeithmal, C. P. C. (1990). Management: function and strategy (No. 658.4 B317m Ej. 1).
Irwin,.
Yanagizawa, S., & Furukawa, H. (2016). Fitness of Job Type and Management by Objectives: Mediating
Effects of Perception of Effectiveness and Goal Commitment and Moderating Effects of Supervisor's
Behavior. Japanese Psychological Research, 58(4), 297-309.