Management by objectives (MBO) is a process in which a manager and an employee agree on specific performance goals and then develop a plan to achieve them. It is designed to align objectives across the organization and drive employee participation and engagement. Key objectives and results, or simply OKRs, are a management framework that has become very popular in recent years. However, this approach was first introduced in the 1980s and is basically a reduced and more streamlined version of Management By Objectives (MBO), an intelligent management framework that management superstar Peter Drucker popularized some thirty years earlier.
Top management is now appalled by the fact that the new plan is as unsatisfactory as the old one and is bitter that participation didn't work. The group evaluation of each manager's work should be a means of providing each one with constructive feedback, not of determining compensation. If that is the case, then the key environmental factor in performing tasks and managing growth is the relationship between manager and superior. If the spirit of the organization is based on voracious internal competition, talk and distrust, it doesn't make much sense to talk about self-motivation, human needs or commitment.
The group's discussion with each other and with its superior should include an examination of the organizational and environmental obstacles that hinder the achievement of the goals and, in particular, of the organizational and leadership support that is required to achieve the objectives. It is directly related to the productivity of employees or the time it takes them to achieve their goals and objectives. For example, if there is no comprehensive guidance and support program to help new employees adapt, then the pressure on lower-level managers to hire members of disadvantaged minority groups and reduce their turnover can only be seen by those managers as an empty mockery. It is an important component of that company's professional management style, which has resulted in commendable growth.
Lower-level managers would then have seen the company as a human company in their own enlightened interest and would not have had to create terrifying fantasies about what were the conflicts of senior management that had caused a good person to leave. Therefore, the objectives should include not only the personal and occupational goals of the individual manager, but also the corporate goals that the manager and the superior have in common. To be truly effective in the long term, MBO programs will probably have to be accompanied by some type of benefit-sharing program (that is, programs in which organizations share some of the financial gains accumulated by ideas, productivity improvements, and cost savings that result from employee participation). This goes against the opportunity for colleagues, both in the same work unit and in complementary units, to develop objectives together to achieve maximum integration.
In general, each report manager's range of options is limited to one option for a part of the organizational action or the improvement of specific statistics. And the reward is money for them or their top managers, while for you the reward is keeping your job. Nobody listened to what the managers were saying, what they wanted, where they wanted to go, where they wanted the organization to go, and what they thought about the supposedly rational procedures that had been initiated.
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