How to overcome chronic problems of managing managers and professionals? (8 steps)
George Odiorne says that MBO helps to overcome many of the chronic problems of managing managers and professionals. For example:
a) It provides a means of measuring the true contribution of managerial and professional personnel.
b) By defining die common goals of people and organizations and measuring individual contribution to them, it enhances the possibility of obtaining coordinated effort and team work without eliminating personal risk taking.
c) It provides solution to the key problems of defining the major areas of responsibility for each person in the organization, including joint or shared responsibilities.
d) Its processes are geared to achieving the results desired, both for the organisation as whole and for the individual contributors.
e) It eliminates the need for people to enhance their personalities, as well as for appraising people on the basis of their personality traits.
f) It provides a means of determining each manager’s span of control.
g) It offers an answer to the key question of salary administration. How shall we allocate pay increase from available funds, if we want to pay for results?
h) It aids in identify potential for advancement and in finding promotable people.