PRINCIPLE’S MANAGEMENT
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(3) Final review.
1. Setting Of Objectives To begin with, the corporate objectives are defined by the Board of Directors. This is followed by an analysis of management tasks by formal job specification, defining key result areas and formal responsibilities for the establishment of objectives, and the decisions to be taken by individuals. This involves meetings between superiors and subordinates throughout the organization for mutual establishment of performance targets for the subordinates. For this step in the MBO process to be successful, it is necessary that subordinates express activities and tasks in specific and measurable terms. Superiors also must do their home-work carefully at the objective setting sessions because they will have to set their own objectives with their superiors.
2. Intermediate Review Having co-ordinate the setting of individual targets with overall corporate objectives with a view to ensuring the achievement of optimum results, the next step is (a) To provide adequate control information to enable the superiors and subordinates to review periodically the progress made by subordinates towards their performance targets or standards, and (b) For superiors to provide appropriate direction and set new targets if and when it is found that any subordinate is not on the right course. The frequency of intermediate review will be different from superior to superior. The nature of remedial action in case of deviation from the standard will also be different. MERITS OF MBO Mgt by objectives leads to several benefits for the org. first, it result in better communication between superior and subordinate, because they actively participate in frequencies objectivesFirstly setting session taking into consideration each others point of view, difficulties and conflict. Secondly it makes for greater clarity in subordinate’s job assignments. The subordinate knows precisely what is expected of him. In any case, in the determination of the targets set for him, he will have a full say. Thirdly employees are effectively motivated. Because they are allowed considerable dissertation in the setting of targets to be achieved by them, they are totally committed to the
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