Advantages of the MBO:

a. MBO helps and increases employee but it relates over all goals to the individuals goals, and helps to increase an employee's understand of where the organization is and where it is handling.

b. Managers are more likely to complete with themselves than with other managers. This kind of evaluation can reduce internal conflicts that often arise when the managers compete with each other to obtain scarce resources.

c. MBO results in a means ends chain. Management at successfully lower level in the organizations establishes targets which are integrated with those at the next higher level. Thus it can help ensure that everyone's activity is ultimately aimed towards organization's goals.

d. MBO reduces roles conflicts and ambiguity.

e. MBO provides more objective appraisal criteria. The targets that emerge from the MBO process provide a sound set of criteria for evaluating the manager's performance.

f. MBO forces and aids in planning. By forcing top management to establish a strategy and goals for the entire organization, and by requiring other managers to set their targets and plan how to reach them.

g. MBO identifies problems better and early. Frequent performance review sessions make this possible.

h. MBO identifies performance deficiencies and enables the management and the employees to the set individuals self improvement goals and thus proves effective in the training and development of people.

i. MBO helps the individual's manager to develop personal leadership, especially the skills of listening, planning, counselling, motivating and evaluating.