Benefits of MBO

1. Clear goals:
2. MBO produces clear goals where performance is measurable.
3. Better planning:
4. MBO sharpens the planning process with specific goals resulting from concrete thinking.
5. Facilitates control:
6. A clear set of verifiable goals provides better control.
7. Objective performance appraisal:
8. MBO provides a basis for evaluating individual performance since goals are jointly set by supervisors and subordinates.
9. Appraisals are more objective and impartial as performance is evaluated against verifiable objectives.

MBO Benefits (Contd.)

1. Motivational force:
2. Motivates managers to plan proactively rather than reactively. It promotes result-oriented planning instead of activity-based planning.
3. Better morale:
4. Participative decision-making and two-way communication encourage open and honest communication, minimizing misunderstandings.
5. Result-oriented philosophy:
6. Managers are forced to develop specific goals, action plans, allocate resources properly, and establish necessary controls.