BUS 203(4): Homework 3

Please submit it by 10.00 pm on 27 Aug’20

Name and ID: Ishrat Mahnur Orpita, 191011117 Marks: 10

Question: With an example, please discuss steps involved in MBO program. Discuss advantages and
disadvantages of MBO program.

Please start writing your answers from here:

Management by objective is about specific performances goals which are jointly determined by
employees and managers. It’s a progress toward accomplishing goals is systematically reviewed. For
example if a firm’s HR creates a plan, then they will talk to their employees. By feedback, they will come
up with new ideas to assist in performing the goal. So the HR management will make sure that
employees are al doing their role. After that HR will observe employee performance to ensure if the goal
is profiting the business. There are some steps involved in MBO program.
 Like defining organizational goal and to see if overall objectives and strategies are formulated,
major objectives should be allocated among divisional and departmental units.
 Defining employees’ objectives are as well important. Unit managers collaboratively setting
specific objectives for their units with their managers and certainly objectives are together set
with all department members.
 Non stop watching performance and progress is to see actions plans, defining how objectives
are to be succeeding, are accurate and agreed upon by managers and employees.
 Then comes the performance evolution to spot action plans are applied.
 Providing feedback is an important step as it is a progress toward objectives is timely reviewed.
 Lastly performance appraisal is supreme to inspire employee for their performance. Successful
achievement of objectives is reinforced by act based work.

There are again some advantages and disadvantages of MBO program. Advantages such as
1. Better performance for timely monitoring and giving priority to employees’ work and reward for
performance basis.
2. Improves communications by providing feedback and watching employees closely how they are
performing their act.
3. Make better organizational structure from managers and employees since they perform a
designed plan.
4. Best use of HR by setting goals and dividing in departmental unit so that they can do their part
calmly and follow strategies to do well.

On the other hand there may be some limitations and disadvantages of MBO program. Such as
1. Difficulties quantifying the goals and performance as to evaluate the task to employees.
2. There may be some lacking in top management in the support system.
3. It’s a costly and time consuming process. These were some discussion on advantage and
disadvantages of MBO and overall process.