What Is Management By Objectives And Its Advantages And Disadvantages?

Management by objectives is a concept of management that has become very famous over the years. It is the process of setting an agreeable objective by the mutual understanding of management and employees and then working for its achievement. The advantages are:
- Involvement of all the employees.
- Employees are motivated and work together.
- Collective contribution towards goals
Disadvantages are:
- Objectives can be misleading and short term.
- System might not have the capabilities required for MBO.
- Organizational culture might not accept it.

It is an modern method of performance appraisal.in simple words management by objective is an process by which they see an organisational goals and one who do there work best is apprised not only the workers but management as well. So we can write process as:
Set organisational goal - joint goal setting - performance review - set check posts -  feed back.
So in conclusion we may say it has three foundations:
Goal setting
feedback
participation

Advantages:
1.) Helps and increases employees motivation.
2.) Managers are more likely to compete with other manager.
3.) It reduces conflicts and ambiguity.
4.) It leads to good Planning.
5.) Identify problems.
6.) Develop leadership qualities.

Disadvantages:
1.) Failure to give guidelines to goals.
2.) Danger of inflexibility.
3.)Failure to teach philosophy of MBO.
4.) Managers compitition may lead to tug of war.