Management by Objectives (MBO) is a business strategy used to provide guidance and direction to organizational activity. It is a strategic model designed to improve the performance of an organization by setting clear objectives that are agreed upon by both management and employees. This approach helps managers and employees work together to make better decisions, focus on their most important goals, and ultimately improve performance. The customer service manager can use MBO to measure performance in terms of the time spent per customer and the number of calls.
Additionally, qualitative aspects of performance can be discussed and raised as questions or concerns. Senior management should be aware of any potential barriers that could prevent the achievement of goals, as this can lead to cynicism among managers. MBO is a collaborative process between management and employees, where objectives are mutually decided. By following these steps, you can successfully implement a management by objectives culture and see an improvement in your team's performance.
Senior management should not assume that they have sole responsibility for setting objectives, providing rewards, and driving the organization. MBO should be a general management philosophy that is applied across the entire organization, rather than just a divisional process or performance evaluation technique. Confusion of job functions or the management of multiple tasks by specific people can create an imbalance in the overall management structure. To ensure efficiency, the production of equipment should exceed the resources dedicated to it.