Management by Objectives (MBO) and Outcome Based Management Systems (OBMS): A Comparison

Abstract

Effective management is all about successfully achieving the long-term and short-term goals while guiding everyone towards the vision of the organization. However, it is easier said than done. It is a much more difficult task for any manager to achieve the goals set by the management system along with maintaining the balance between the management and employee satisfaction. The effectiveness of different styles of management adopted by an organization can be determined only by proper planning and a systematic framework that keeps the flow of work in check. It is inevitable to adapt the culture of change for any organization, and if failed to speed up with the pace of changing times, it will be left behind the race of improvement and growth, the businesses will stagnate and it may even die, But the transformation is always accommodated with the resistance to change, and teething troubles while people get used to new ways of doing things can wreak havoc. The change management process is the make-or-break challenge that will determine whether the implementation of change is successful or not. In this process the previous experiences and practices of management systems of various organizations and their various experimentation of change, their failure and success stories imprinted by many management thinkers may guide for the future decisions. Understanding the challenges faced by the organization, and proper research in the field one can set the objectives for the activities to undertake for the fulfilling the goals. MBO played its exemplary role since two three decades for the success of the organization, now management gurus are talking about OBMS to realize the organization goals. In the present article a comparison of MBO is made with the OBMS.