Keywords: mbo program negatives, benefits associated with mbo program
Motivating employees seems to be an issue for managers - Discuss the advantages and drawbacks of the MBO program and provide at least one example to support your debate.
One of the basic guidelines of management predicated on the idea an individual's performance depends upon its level of competence and drive.
The motivation is an factor of encouragement and incentive which allows to effectively mobilize the attempts of employees towards obtaining its objectives.
Like participation, motivation is often provided as a panacea, a remedy for working with absenteeism, insufficient energy and the sluggishness of staff. But before being a solution, the determination is primarily a difficulty for managers.
Management by goals (MBO) is one of the prevailing management styles which a director might use to stimulate its employees.
What is Management By Objectives (MBO)?
Management by objectives (MBO) is a organized and organized procedure which allows management to give attention to achievable goals and also to attain the perfect results from available resources.
It aspires to increase organizational performance by aligning goals and subordinate goals throughout the business. Essentially, employees get strong type to recognize their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback along the way to reach targets.
This fundamental model does not represent a universal solution for any organizational problems, but a model among others, to manage an organization.
Origin
Management by Targets (MBO) was initially outlined by Peter Drucker in 1954 in his book 'The Practice of Management'. The fundamental concepts which this management philosophy lies on, target at helping both organization and employees to develop.
The emphasis must go from the management of activities themselves to management centered on organizational goals.
It concerns, among other things, the proper planning, marketing, fund, accounting, recruiting management, management of operations etc.
Coming back again to the source allows noticing that we often move away from the origin concepts.
It can be criticized for its approach focused only externally organization client satisfaction, thus neglecting those situated within the business.
Also, we notice an extremely quantitative strategy omitting behavioural elements related to the accomplishment of goals.
Usage
The MBO can provide above the four classical stages of management namely planning, organizing, course and control. Professionals in any way levels and sometimes even employees can use it, as long as their positions leave a room for a few initiatives. As an instrument for planning and control, it is difficult to find better.
It is also an outstanding approach to performance evaluation to be used only or in addition to some other based ideally on behaviour. However, the fundamental process of MBO must be used.
Indeed, it sometimes makes people falsely believe that they work by goals. This example happens often for employees who receive a portion of goals from their administrator without a compromise.
As it is shown in the below diagram, the organization systemically can be seen as a place of change of inputs into outputs.
OUTPUTS
Transformation
INPUTS
The following diagram shows the way the organization planning is performed contrary to the execution.
Activities
Clients
Objectives
Needs
Resources
Execution
Planning
According to the diagram above, it is clear our work is driven and focused by customer needs.
The clients' needs are evaluated as far as possible then comes the formulation of targets that meet their needs depending on following standards:
Specific
Measurable
Achievable
Realistic, and
Time-related
Advantages
Involving employees in the complete process of goal setting techniques and increasing staff empowerment increases worker job satisfaction and commitment.
The goals thus arranged are obvious, motivating and there is a linkage between organizational goals and performance goals of the employees.
For individual
The MBO can assist in developing different features in a given person: honesty, self-confidence, professionalism, self-control, self-reliance, maturity, realism, reasoning, sense of negotiation, potential to create documents, etc. . .
He becomes expert of its action within the organization; he recognizes where he will go and can easily manager his time. He avoids falling in to the Activity Based mostly Management system where he let himself lead by others in the planning of its jobs. At the moment, he sails until someone pushes him in a particular direction. The visualization of his goals helps the supervisor to better talk to his subordinates what he is expecting of these.
At the evaluation level, which will focus on results and not on his personality, the individual becomes included from beginning to end. Indeed, he participates in determining norms for success (writing goals at the beginning of a period), measuring results (records at end of period), the evaluation norms- results and lastly, the ensuing discussion. His manager becomes an consultant instead of a judge, both manager and specific work to make the near future by analyzing days gone by. Thus the evaluation turns into instructive alternatively than punitive.
For Organization
The firm should benefit from the improvement of output through better time management. The hyperlink between resources given to the managers and
concrete results can be proven. The growing of targets through periodic accounts creates a training result, because everyone can see the contribution of others to the progress of the organization. The manager is aware of who does or who has the best development. He has a starting point to make the restructuring of groups or to fix the remuneration. Generally, the evaluated individuals will accept the decisions made about them. However, if the system is too punishment oriented, it could be boycotted by the persons worried whose the collaboration is proving to be essential. The organization does not need to determine a
daily monitoring system, since professionals will be in charge of attaining their goals at confirmed date. The manager plays a more positive role to his subordinates than in a typical system, so that we can see an improvement in the organizational climate.
Disadvantages
For individual
If he can not develop the characteristics required for the process, the individual might not be effective properly, suffer from stress because his incompetence might seem one day and finally, the business could flame him or he'll consider himself to change his job.
The establishment of aims takes time and work, as well as writing information explaining the amount of accomplishment. It therefore escalates the formality of the administrative process.
Being evaluated only in line with the quantifiable results achieved can be irritating, since you can reach several others which are not quantifiable. Likewise, the analysis of behaviour is neglected as an important sizing.
For Organization
Implementation normally takes several years and costs quite expensive, since it operates in the steps of any organizational development. In addition, you can spend without success if the amount of resistance to change is too great.
As we ignore the non-quantifiable results and fail to measure the behaviour of managers, focusing only on the quantifiable results, we disregard certain dimensions
of evaluation and we can examine many people unfairly. They can negotiate lower focuses on than their competences, to allow them to always achieve. For instance, a salesperson might set an objective of increasing customer orders by 1 percent in money terms over the course of yearly even if the guy can do more.
Q2. It isn't what you say, think, or consider but what you do that really matters. Discuss your judgment on this subject as it pertains to Leadership. While using the Denny's case study provided in your course documents, please identify where this assertion may be suitable.
Denny's case summary
This circumstance concerns allegations of racial discrimination at Denny's restaurants and the corporate reaction to those allegations. It converts on the idea of how Denny's father or mother company can make its goodwill response consumer after by using a traditional behind-the-scenes methodology.
Jerry Richardson failed to bring change in his corporation through his communication way.
It's not what you say, think, or believe that but what you do this really counts
What we say, think or believe
These represent only and only my thinking and my estimation. In such circumstances, if you are a leader, there exists risky of of loosing contribution of stakeholders in decision making, that may impact on ownership of the decision. It is merely when you realize, that you can implement (execution). The lack of ownership of your choice will have a significant effect on sustainability of your choice in future course. This is a very critical concern in almost all of corporations such as Denny's restaurant where all decisions have to be dictated. Professionals or leaders should try to learn about how to entail their members in any decision related to company's life; otherwise, implementation of these decisions will not bring the expected results.
What you do this really counts
Yes, because it is like a demo. Some times it is difficult to describe a methodical or philosophic idea as it is difficult to put into practice decisions taken in non participative condition even if the analysis has shown the success. In such instances, there exists need to demonstrate that this or that one can work out.
Such methodology can have the following advantages:
Knowledge transfer: This facilitate the quick understanding because you can compare the theory from a live example.
Secondary, the beneficiaries or stakeholders can simply replicate the theory because they can easily see properly how this is organised and made. Of course this requires a minimum of accompanying actions such as training or field visit where in fact the project has been executed.
Thirdly, when subalterns understand and can practice what their leaders shown as a demo.
In final result,
Even if control has to bring new idea, frame of mind and believe to move forward, you can find popular to ensure that the new idea offers enough time to be disseminated to the beneficiaries in order to understand its importance in regards to their livelihood and then because they are the main one to put into action it, it'll make life easier (possession and sustainability). Activities such training, sensitization, mobilisation, research tours are essential in case only new technology/technologies, otherwise, we have to demonstrate everything we think so that people can easily choose and own it.
It is helpful with an understanding of why Denny's employees withstand change, because understanding this may allow managers to plan ways of reduce resistance. As top administrator Jerry Richardson must be aware that not all resistance is about emotion, to win employee's determination for change, he must participate them on both a rational level and an mental level.
Q3. Controlling selecting and taking care of people is key responsibility of the director, please review the Vidsoft research study shown under Course Documents (midterm) and discuss what you think the next people should have done differently to prevent this kind of situation from happening again:
a. Babatunde
b. Keith Nash
Introduction
Promoting from within Vidsoft was good business practice and a robust employee motivator. Internal promotion policies can create devotion through the acceptance of individual merit and improved morale by gratifying employees' need for increased status.
The Vidsoft case
The Vidsoft case handles an interpersonal turmoil created by the protagonist's decision to promote one of is own staff. As the decision made good business sense, it created a bunch of issues between two associates and potential implications for all of those other group. Given the multicultural staff, the conflict and its own resolution are especially complicated.
Alaji Babatunde, mature director at VidSoft faces a potential "Crucible of leadership" as he's now placed in a position of deciding the fate of two members of his personnel. If handled appropriately, this could explain his career as a supervisor. If handled incorrectly, this could prove to be his downfall. In order to resolve the existing problem, Brabatunde's options are; to grant Alex Hsu's submission to be transferred to another team that does not directly report to Jenna Li (granting this need may send the negative communication that upper management will not support Jenna Li's talents); allow Jenna Li to control the situation as she recognizes fit; or escalate the problem to his senior manager, Adam White, in order to solve this stalemate?
Babatunde did away with the "status quo" by using an alternative reporting structure for his team than was past the practice at VidSoft. As his team grew credited to Vidsofts's expansion, Babatunde assessed that the standard reporting structure didn't serve his objectives, which were primarily to maintain a high level of production with a larger team while still preserving a close and personal reporting collection. However, with this new reporting framework came a new challenge, mainly the current issue between Alex Hsu and his new manager, Jenna Li.
Alex Hsu's demand to be used in another team that does not are accountable to Jenna Li is apparently a demand made predicated on a clash of personalities. However, on better inspection, it appears that it may stem from the actual fact that both he and Jenna Li are of Chinese language respectable. Alex Hsu's reluctance to simply accept Jenna Li as a manager will go beyond his primary argument that, anticipated to Li's lack of experience as a supervisor and her specialized background, he cannot learn anything from her.
a. Babatunde
The effective management of folks in Vidsoft requires an understanding of desire, job design, prize systems, and group effect.
It's Babatunde responsibility to avoid and resolve discord of his team. However there is no warrant that he could be able to prevent conflict. A key issue, therefore, in stopping conflict is the value of ensuring that communication takes place as effectively as possible.
That conflict might have been prevented by making sure that there's a suitable community for coping with any dissimilarities and tensions in the early levels before they develop into a lot more serious conflicts. This, therefore, consists of creating a working environment where openness, credibility and trust are valued - something requires control skills.
Preventing conflict is therefore a concern strongly associated with leadership. A good innovator is someone who can nip conflicts in the bud whenever we can, and to package with them positively and constructively in those situations where they can not be averted.
Team people should all be cared for in a comparable way without favorites or discrimination.
Different team members have different skills and these differences should be respected. Involve all associates and ensure that people's views are considered. He should be honest about what is going well and what's going badly in his team.
b. Keith Nash
As a high administrator, he could set suggestions for promoting a worker within Vidsoft and making sure everyone in Vidsoft is aware what's on the list. Then keep an eye on how employees match, be it in formal twelve-monthly reviews or on an ongoing basis as the problem dictates. Encourage employees to suggest others in the Vidsoft Company they think strike those guidelines. "Employees should never really be amazed about any kind of promotion decision. It is important to have an open dialogue on a continuing basis so that everyone understands where he or she stands pretty much all the time. "
