Effectiveness of MBO-Comparative Analysis of LIC and HDFC Insurance

Abstract

MBO is a dynamic process whereby the superiors and the subordinates of an organization jointly identify its goals define each individual’s major areas of responsibility in terms of results expected and use these measures to assess the contribution of its members in the development of organization. MBO increases the value of communication, which will lead to an increase in the successful completion of goals in the business settings. As a performance appraisal technique It also affects the different aspects relating to job like promotion, Increments, placement and transfer, improving performance, self-development and setting higher goals for the future . The MBO method is supposed to enhance organizational effectiveness by getting the organization to become more result focused. Present paper focuses on how far the practice of MBO is helpful in improving the performance of employees, their self –development and setting higher goals for the future in LIC and HDFC. Helpfulness of MBO in enhancing communication between superior and subordinate is also examined in the paper.