Page 65 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Management Practices and Organisational Behaviour

Notes It is believed that participation in the goal-setting process is needed to strike a happy
balance between individual and organisational goals. MBO gives the subordinates, a
voice in what goes on in the organisation. It emphasises the ‘jointness’ of the objectives
and indicates that both superiors and subordinates can play a dynamic role. Accordingly,
MBO starts with the establishment of clear and concise goals of performance, which are
understood and accepted by both superior and subordinate.
In order to improve the quality of objectives, in the joint goal-setting sessions, Tosi and
Carroll have suggested the following steps:
(a) The superior must participate in the discussion. He must be a good listener and also
a good contributor to help the subordinate.
(b) Irrelevant discussions should be avoided.
(c) Identify the obstacles that may stand in the way of achieving the goal. Once obstacles
are identified, it is easy to find out the solution.
(d) Alternatives should be looked into only after clearly identifying the obstacles.
(e) Setting goals is a tough exercise. The goals planned ultimately should satisfy several
conditions. They must be (i) clear, concise and unambiguous; (ii) accurate, in terms
of the true end state or condition sought; (iii) consistent with policies, procedures
and plans, as they apply to the unit; (iv) within the competence of the man; and
(v) interesting, motivating or challenging wherever possible. “Setting goals is too
important an activity to hurry through. There should be adequate time given to
allow for discussion and evaluation.”
(f) The superior should refrain from making suggestions. He should not try to impose
goals on subordinates by dominating the goal-setting sessions.
(g) Once an objective has been set, think about it and talk about it again. Research
evidence points out that people who have solved a problem start again and try to
reach a second solution, the second solution is better than the first.
The most important factor in determining the success of the mutual goal-setting process
lies in the ability and willingness of the superior to allow true participation by the
subordinate. ‘It requires intelligent coaching by the superior and extensive practice by the
subordinate.’ It requires a genuine commitment to an interactive relationship between
managers and their subordinates.
2. Action plan: The action plan is the means by which an objective is achieved. The action
plan gives direction and ensures unity of purpose to organisational activities. It will state
in detail, exactly what is to be done, how the subordinate will proceed, what steps will be
taken, and what activities will be engaged in as the subordinate progresses. It provides a
specific answer to the question: ‘What is to be done?’ Questions like who is responsible for
each activity, what resources are needed, what the time requirements are would also be
answered.

Example: Nitin Albert and his sales manager might agree upon the following standards
of performance for Nitin:

(a) increase sales of mobile phones in the Southern region by 10 percent by the end of the
current year; and
(b) reduce travelling expenses during the above period.

There are two ways of developing specific action plans: They may be developed by both
manager and subordinate or by the subordinate alone. To ensure success, the superior

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