HRM ASSIGNMENT-

GROUP
1
6
GROUP MEMBERS
1. ADITYA GURUNG
2. ANKIT GOMBER
3. ARYAN SHARMA
4. CHARCHIT AGGARWAL
5. GAURAV GARG
6. ISHAN VIJAY VATSAL
7. LAKSHYA KAUSHIK
8. MOHD. ZAID
9. PALAK LAMBA
SUMMARY OF THE CASE
The divisional manager of a company attended a seminar, on
management by objectives. He got very keen about the topic. So, in the
next staff meeting, he introduced the concept to his subordinates and
several questions were raised by the production and finance manager.
The divisional manager explained them about the verifiable objectives
and everyone was surprised about his sincerity. At the end of the
meeting, the divisional manager asked everyone to translate objectives
into goals in their own division. Based on this, we have to answer the
following questions.
LET’S UNDERSTAND MANAGEMENT BY
OBJECTIVES (MBO)

Management by objectives (MBO) is a strategic management model that

aims to improve the performance of an organization by clearly defining
objectives that are agreed to by both management and employees.

Management by objectives (also known as management by planning) is the

establishment of a management information system (MIS) to compare
actual performance and achievements to the defined objectives.
Practitioners claim that the major benefits of MBO are that it improves
employee motivation and commitment and allows for better
communication between management and employees.
ADVANTAGES OF MBO
1. Employees take pride in their work with goals that they know they can
achieve.

2. It aligns employees with their strengths, skills, and educational

experiences.

3. MBO leads to increased communication between management and

employees. 

4. Assigning tailored goals brings a sense of importance to employees,

bringing loyalty to the firm.

5. Management can create goals that lead to the success of the company.
DISADVANTAGES OF MBO

1. As MBO is focused on goals and targets, it often ignores other

parts of a company, such as the culture of conduct, a healthy
work ethos, and areas for involvement and contribution.

 2. MBO puts increased strain on employees to meet the goals in

a specified time frame. 

3. If management solely relies on MBO for all management

responsibilities, it can be problematic for areas that don't fit
under MBO.
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