Page 66 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Unit 3: Planning and Decision-making

must be willing to sit with each subordinate and review the action plan (such as the above Notes
one), once it has been developed. The periodic review process helps the superior to monitor
progress towards goal achievement. It helps in finding out better and more efficient
methods of accomplishing goals, in finding out the feasibility of implementing the earlier
goals uncovering barriers to accomplishment etc. If the subordinate does not appear to be
on the right course, the performance objective can be modified or the subordinate can be
redirected into more productive behaviours. The emphasis in periodic review sessions
should be on checking the progress toward goal achievement. If the performance is not
satisfactory, the superior must try to isolate the causes of lack of progress without criticising
the subordinate and indicate specific steps, as to how to proceed in future so as to achieve
the goals. The emphasis should be on improving performance rather than degrading
subordinates.

3. Final Review: This is the last phase of the MBO programme. In this step, the actual results
are measured against predetermined standards. Mutually agreed-on objectives provide
basis for reviewing the progress. While appraising the performance of subordinates, the
manager should sit with his subordinates and find out the problems encountered while
accomplishing the goals. The subordinate, as in the periodic sessions, should not be criticised
for failure to make sufficient progress; the atmosphere should not be hostile or threatening.
A give-and-take atmosphere should prevail and the appraisal should be based on mutual
trust and confidence between managers and subordinates. In actual practice, this type of
give-and-take session is extremely difficult to achieve and rarely reaches its potential
value, unless managers are gifted with necessary interpersonal skills. Often, appraisal
takes place for the purpose of determining rewards and punishments; judging the personal
worth of subordinates and not the job performance. As a result, appraisal sessions become
awkward and uncomfortable to the participants and intensify the pressure on subordinates
while giving them a limited choice of objectives. Insecure subordinates may come to
‘dread’ the sessions and they may not feel free to communicate honestly and openly,
without fear of retaliation. Appraisals can be really useful, if the person being evaluated
knows and accepts in advance the grounds upon which he is being appraised.

3.5.5 Benefits of Management by Objectives

MBO is hailed as the greatest innovation in years. Advocates argue that “it is the successor to
Taylor’s ‘mental revolution’-a new way of thinking about, and engaging in, collective effort”. It
is claimed that when an organisation is managed by objectives, it becomes performance-oriented,
it grows, develops and becomes socially useful in many ways:

1. Clear goals: MBO produces clear and measurable performance goals. Goals are set in an
atmosphere of participation, mutual trust and confidence. There is a meeting of minds
between the superior and the subordinates, where the latter will be shooting for right
goals. Participation increases commitment, additionally it also results in setting better
goals. Research experience also indicates that individuals are more likely to be highly
committed to objectives when they share a hand in setting. Joint goal-setting sessions
enhance team spirit and intergroup communication.

2. Better planning: MBO programmes sharpen the planning process. Specific goals are
products of concrete thinking. They tend to force specific planning into setting highly
specific, challenging and attainable goals; developing action programmes tied to a definite
schedule; providing resources for goal accomplishment; discussing and removing obstacles
to performance-all these activities demand careful advance planning. Passivity gives way
to activity.
3. Facilitates control: MBO helps in developing controls. A clear set of verifiable goals
provides an outstanding guarantee for exercising better control.

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