3.05  Advantages of MBO

. Advantages of MBO The advantages of MBO are explained below: . Managers are involved in objectives setting at various levels of management under MBO and this commitment ensures hard work to achieve them. . MBO process helps the managers to understand their role in the total organisation. . Manager recognises the need for planning and appreciates the planning. . MBO provides a foundation for participative management. Sub-ordinates are also involved in goal setting. . A department does not work at cross purpose with another department. In other words, each department’s objectives are consistent with the objectives of the whole organisation. . Systematic evaluation of performance is made with the help of MBO. . MBO gives the criteria of performance. It helps to take corrective action. . Delegation of authority is easily done with the help of MBO. . MBO motivates the workers by job enrichment and makes the jobs meaningful. . The responsibility of a worker is fixed through MBO. . Decision is taken by the management very quickly. The reason is that each worker knows the purpose of taking a decision and does not oppose the decision.