Advantages of MBO

Advantages of MBO

The advantages of MBO are explained below:

1. Managers are involved in objectives setting at various levels of management under MBO and this commitment ensures hard work to achieve them.

2. MBO process helps the managers to understand their role in the total organisation.

3. Manager recognises the need for planning and appreciates the planning.

4. MBO provides a foundation for participative management. Sub-ordinates are also involved in goal setting.

5. A department does not work at cross purpose with another department. In other words, each department’s objectives are consistent with the objectives of the whole organisation.

6. Systematic evaluation of performance is made with the help of MBO.

7. MBO gives the criteria of performance. It helps to take corrective action.

8. Delegation of authority is easily done with the help of MBO.

9. MBO motivates the workers by job enrichment and makes the jobs meaningful.

10. The responsibility of a worker is fixed through MBO.

11. Decision is taken by the management very quickly. The reason is that each worker knows the purpose of taking a decision and does not oppose the decision.