Benefits Or Advantages Of Mbo Process

Benefits or Advantages of MBO Process

The benefits or advantages of MBO procedure are depicted inwards the moving-picture exhibit below.

1. Better utilisation of resources

In MBO, in that place is optimum utilisation of physical, fiscal as well as human resources for achieving the objectives.

2. Development of personnel

MBO helps to prepare as well as develop the subordinate managers. It improves their skills inwards planning, decision making, controlling, directing, leadership, etc. So these managers are ready for advertisement to higher posts.

3. Makes planning effective

In MBO, the objectives are rattling clear. So, viable plans tin survive made for achieving these objectives. Therefore, MBO makes planning effective.

4. Better squad work

The superior as well as subordinate managers operate together for fixing objectives as well as monitoring the performance. This overall improves their relationship, as well as they operate every bit a team.

5. Concentration on primal final result areas

In MBO, objectives are fixed for the Key Result Areas (KRAs). All the plans are made for the KRAs. Therefore, wasteful activities are avoided.

6. Objective evaluation

In MBO, the objectives are tangible as well as measurable. The actual functioning of the subordinate tin survive accurately compared amongst the objectives. So, an objective evaluation is possible without whatsoever favour to anyone.

7. Result oriented

MBO is a final result oriented. It gives to a greater extent than importance to the final result i.e. achieving of objectives. It gives less importance to activities as well as methods. In fact, MBO is likewise called Management By Results.

8. Sound organisational structure

In MBO system, the organisational structure is rattling sound. This is because it is periodically reviewed, as well as necessary changes are made to accommodate the needs of the company.