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www.gyaniversity.com91MMPC001: Management Functions and Organisational ProcessesExplain the need for MBO in an organization and the process involved in it. Briefly discuss the benefits of having MBO in an organization.not only boosts morale but also drives performance improvement throughout the organization.Third, using MBO allows organizations to manage complexities and uncertainties effectively. As business environments constantly change, continuous monitoring and feedback become crucial. MBO creates a platform for regular assessment of progress against goals, enabling managers and employees to identify emerging issues, adjust plans, and adapt strategies to new conditions. This proactive approach reduces the risk of failure in the face of external changes.Processes Involved in MBOThe implementation of MBO follows a structured process that is integrated within the broader planning functions of an organization. The following stepsoutline the systematic process of MBO:Setting Organizational Objectives: The first step is to define clear and comprehensive organizational objectives. These objectives should be specific, measurable, achievable, relevant, and time-bound (SMART). Top management plays a crucial role in establishing these long-term and short-term goals based on the organization%u2019s vision and mission.Cascading Objectives to Departments and Individuals: Once organizational objectives are defined, the next step is to break these down into departmental goals and individual targets. This process involves discussions between managers and employees to ensure that personal work plans align with departmental and overall business goals. The clarity of roles is emphasized, ensuring every team member understands their contribution to the organizational mission.Developing Action Plans: With objectives set, each department and individual then formulate detailed action plans outlining how they intend to achieve these goals. This step involves identifying necessary resources, setting milestones, and defining timelines. Action plans are the bridge between setting objectives and actual execution, and they need to be comprehensive as well as realistic.Implementing the Plans: The execution of the action plans is carried out in this step. Employees work on their assigned tasks and managers provide support by allocating resources and addressing any challenges that arise. Effective implementation requires open communication and a coordinated effort across all levels of the organization.Periodic Monitoring and Revie Regular review meetings are essential in the MBO process. Managers and employees come together to assess progress towards