Industrial Safety Management > Chapter-1 - Topic- Role of Management in Industrial Safety > Subtopic- Management By Objectives

 Management by Objectives (MBO)- 

What is MBO- 

This concept was first given by Alfred Slown in 1950 but Peter Drucker popularized it in 1954 in his book 'The Practice of Management'

It is a system of management where-

(i) goals for the business as a whole are set and 

(ii) managers and staff members at every organizational level are actively involved in goal setting. 

The idea is that when employees are involved in goal setting for them, they will put their heart to achieve them.

This approach is also known as management by results, goal management, performance management and accountability management.

Characteristics of the MBO - 

1. It is a system approach integrating all employees for goal setting and achievement.

2. It is a behaviorist approach where human element is recognized at each level. 

3. It is democratic approach because it is participative.

4. It measures results with the standards prescribed and suggests corrective measures.

5. It focuses on goals of the individuals and the organization.

6. It has autonomous control because employees are not controlled from outside but they themselves evaluate their performance in terms of predetermined goals and devise corrective measures if their performance is below the norms.

7.    It boosts up employees' morale and motivation because they are called for participation.

Sequential Steps of Management by Objectives (MBO) - 

1. Set objectives of the organization. 

2. Set objectives of the departments. 

3. Set objectives of the individuals. 

4. Develop action plans. 

5. Implement plans. 

6. Take periodic reviews. 

7. Appraise results.

Advantages & Disadvantages of MBO -

Advantages -

1. Better management. 

2. Clarifies organization. 

3. Harmony of objectives. 

4. Motivation.

5. Evaluation of results. 

6. Development of managers.

7. Improvement in superior - subordinate relations 

Disadvantages - 

1. Difficulty of introducing for reaching changes. 

2.     Difficulty in setting goals. 

3.     Too much emphasis on results. 

4.     Pressure on employees. 

5.     Too high expectations.

6.     Neglect of some important goals. 

7.     Not useful for all. 

8.     Rigidity.

Prerequisites of the MBO-

1.     Setting real objectives. 

2.     Ends - means distinction. 

3.     Clarity of objectives.

4.     Active support from all participants 

5.     Active support of top management. 

6.    Three elements that objectives should be - helpful in evaluating performance, measurable and convertible into targets.

7.     Multiple objectives and sub-optimization. 

8.     Displacement of objectives.

9.     Quantitative cum qualitative objectives. 

10.   Receptivity.

11.   Training for fulfilment of objectives. 

12.   The 'why' spirit (why cannot be obtained?) 

13.   Individual growth.

14.   Study of environment and flexibility. 

15.   Provision of performance.

Role of MBO in Safety : The concept of MBO is much more useful in setting and achieving safety goals because it is a participative approach and safety being everybody's duty and everybody's target (goal) this approach is best fitting for safety management.

First safety goals for the whole organization should be decided by the safety department. They may be:

1. Safety policy.

2. Some million man-hours work without accident. 

3. Clean environment at all workplaces. 

4. Productivity with safety. 

5. Hazards detection and removal.

6. Maintenance of guards and safety devices. 

7. Use of safety equipment.

8. Accident reporting, detailed investigation and record for cost and lesson.

9. Safety inspections and control techniques. 

10. Safety committee, its objectives and functions. 

11. Ergonomic improvements. 

12. Occupational health & hygiene. 

13. Compliance of statutory provisions.

14.   Formation of other safety rules for specific works, SOPs and safety permit systems. 

15.   Induction, on-going and periodical safety programmes.

•   All departmental heads should be involved in above goal setting and they should be convinced for their need and importance. 
• These goals may 'be distributed department wise if possible e.g. training for training department. 
• Then each departmental head will hold meeting of his employees and involve them in setting goals for their department. 
• Departmental supervisors will observe fulfilment of these goals and guide their employees. Each employee will be fully convinced for his individual role and importance for the organization, need for safety for himself and his family, cause and consequence of accident and use of his knowledge, experience and expertise in finding and removing hazards.
• Lastly the performance will be measured against standards or expectation, evaluated, reviewed and reset with the participation of employees involved.
• Thus the process of participation by MBO can be practiced for safety to achieve desired results with live support and active atmosphere.
• All above principles of Management must be utilized from planning to controlling stages of all programmes pertaining to industrial safety, health and environment. Goals must be set for safe design, construction, operation, maintenance, waste disposal, training, fire, first aid, medical check-ups etc. and their achievement should be monitored.

Reference : 

Fundamentals of Industrial safety & health by Dr. K.U. Mistry