Question

Write the three advantages of MBO to organisation.

Answer 1

• Efficient Management : 

MBO serves as a means to develop managerial skills and to improve the performance of managers.

• Effective Planning : 

MBO programme provides a better and sharper planning by clearly stating the goals, developing action plans and fixing up the responsibilities.

• Clarity of Organisational Roles : 

MBO forces managers to clarify the organisational roles and structures. It clearly states the organisation’s role, structures, authority and responsibility, relationship, etc.