What is meant by MBO?

What is meant by MBO?
MBO or Management By Objectives is a thorough and meticulous management process that is accoutred with all those main activities that are completely and consciously directed towards the efficient and effective achievement of objectives, both on an individual basis
as well as a collective basis.
In addition to that, this very approach comprises of a number of steps. Firstly the highest level involves setting goals and objectives. Secondly it deals with clarification of roles to those individuals who are working on the very project and are responsible for accomplishing it. Next comes the step of setting smaller objectives for the people at the sub-ordinate level of the organization who intend to adopt the procedure of MBO. Projects can be both verifiable (quantitative) and also they could be non-verifiable (qualitative) for line managers as well as for other personnel of the organization who are also connected to the process of Management By Objectives.
We can say the management by objectives as a comprehensive managerial system that integrates many key managerial activities in a systematic manner and is consciously directed towards the effective and efficient achievement of organizational and individuals’ objectives.

What are the failings of MBO?
An MBO system has a number of weaknesses. Most are due to shortcomings in applying the MBO concepts. Failure to teach the philosophy of MBO is one of the weaknesses of certain programs. Managers must explain to subordinates what it is, how it works, why it is being done, what part it will play in appraising performances, and above all, how participants can benefit. The philosophy is built on the concepts of self-control and self-direction.
Failure to give guidelines to goal setters is often another problem. Managers must know what the corporate goals are and how their own activities fit in with them. Managers also need planning premises and knowledge of major company policies. There is also the difficulty of setting variable goal with the right degree of flexibility. Participants in MBO report at time that the excess results with the economic results puts pressure on individuals that may encourage questionable behaviour.
To reduce the probability of restoring to unethical means to achieve results, top management must agree to responsible objectives, clearly state behavioural expectations, and give high priority to ethical behaviour, rewarding it as well as punishing unethical activities. In addition, emphasis on short-run goals can be done at the expense of the longer-range health of the organization. Moreover, the danger of inflexibility can make managers hesitate to change objectives, even if a changed environment would require such adjustment