This paper is organized into these main parts. The first part is concerned with the definition of Management By Objectives (MBO). In the second part is intended to advantages and disadvantages of MBO. In the third part, I shall analyze to you whether MBO can apply the Chinese society.
The aim of this paper is to show that MBO is not universal application in all company especially in the Chinese society.
What is MBO?.
Management by objectives (MBO) is the process that organizational objectives are segmented into objectives for individual employees. Superior and subordinates meet and jointly agree subordinates" job specifications and goals, preferably in quantitative terms. Management by objectives supposedly motivates employee through involving them develop their individual careers. Subordinates who exceed their targets might experience a sense of satisfaction in their achievements, and the causes of success can be isolated, analyzed, and applied else. (Bennett,1991, p.203).
Advantages and Disadvantages of MBO.
If an organization applies MBO in its planning, it can enjoy advantages brought from MBO. At the same time, it should also accept disadvantages of MBO.
The advantages of MBO are listed below:.
a) The employee is forced to think careful about their roles and objectives. .
b) Targets are clarified and mechanisms are created for monitoring performance.
c) Crucial elements are identified in each job, creating useful information for determining training and recruitment needs.
d) Subordinates" personal achievements are recognized and rewarded.
e) Performance is appraised against quantifiable and rewarded.
f) Co-ordination of activities between departments, between junior and senior management, and short- and long-term goal are forced.
g) Superior and subordinates are obliged to communicate. In consequence, superiors can identify which subordinates are ready for promotion and appreciate the help subordinates will need to prepare for this.
