Benefits or Advantages of MBO Process
The benefits or advantages of MBO procedure are depicted inwards the film below.
1. Better utilisation of resources
In MBO, at that spot is optimum utilisation of physical, fiscal in addition to human resources for achieving the objectives.
2. Development of personnel
MBO helps to develop in addition to develop the subordinate managers. It improves their skills inwards planning, decision making, controlling, directing, leadership, etc. So these managers are ready for advertisement to higher posts.
3. Makes planning effective
In MBO, the objectives are really clear. So, viable plans tin live on made for achieving these objectives. Therefore, MBO makes planning effective.
4. Better squad work
The superior in addition to subordinate managers operate together for fixing objectives in addition to monitoring the performance. This overall improves their relationship, in addition to they operate every bit a team.
5. Concentration on commutation final result areas
In MBO, objectives are fixed for the Key Result Areas (KRAs). All the plans are made for the KRAs. Therefore, wasteful activities are avoided.
6. Objective evaluation
In MBO, the objectives are tangible in addition to measurable. The actual functioning of the subordinate tin live on accurately compared alongside the objectives. So, an objective evaluation is possible without whatsoever favour to anyone.
7. Result oriented
MBO is a final result oriented. It gives to a greater extent than importance to the final result i.e. achieving of objectives. It gives less importance to activities in addition to methods. In fact, MBO is every bit good called Management By Results.
8. Sound organisational structure
In MBO system, the organisational structure is really sound. This is because it is periodically reviewed, in addition to necessary changes are made to accommodate the needs of the company.
