Is management by objectives still relevant?

So yes, management by objectives is still relevant, but managers strive, above all, to identify objectives and explain why they are relevant to the next level of the organization. MBO, management by objectives, is a process that has existed for some time.

Is management by objectives still relevant?

So yes, management by objectives is still relevant, but managers strive, above all, to identify objectives and explain why they are relevant to the next level of the organization. MBO, management by objectives, is a process that has existed for some time. While it certainly wouldn't be considered a new concept, it's one that still has relevance in the workplace. Many leaders are still operating under this management practice, while others are wondering if it might be the right approach for them.

Management by objectives still exists and can be a useful approach if properly configured and maintained. However, the workplace has changed considerably in recent years, and either more attention needs to be paid to the implementation and maintenance of the system, or more sophisticated systems (such as the comprehensive dashboard approach) should be adopted. Once employees are informed about the general objectives, the plan and the strategies to follow, managers can start working with their reports to establish their personal objectives. Within the framework of the MBO, performance evaluation is achieved through the participation of interested managers.

Jon Warner is an executive coach and management consultant and, in the past, has been an executive director at three very different companies. It is a process in which management defines and transmits the goals of the organization to the members of the organization with the intention of achieving each objective. Ongoing feedback is complemented by frequent formal evaluation meetings in which superiors and reports can discuss progress towards objectives, leading to more feedback. The objectives set by the supervisors are provisional and are based on an interpretation and evaluation of what the company can and should achieve in a specific time.

Jon Warner is a prolific author, management consultant and executive coach with more than 25 years of experience. This will be an individual conversation in which subordinates will inform managers about their objectives and what objectives they can achieve in a specific time and with what resources. We believe that the key to making the MBO work is to have employees write strategies on how they will achieve their objectives. Peter Drucker, author and widely regarded as the father of modern management methods, developed the concept of management by objectives or MBO, as it was briefly known in the mid-1950s in his book “The Practice of Management”.

However, I believe that MBO practices can be very beneficial, especially in smaller companies trying to implement performance management practices. It's best in companies where workers are trusted to make business decisions based on their extensive knowledge of the customer, the business unit and overall business objectives. Setting goals is not only critical to the success of any company, but it also serves a variety of purposes. The MBO is the process of setting goals or objectives in the organization to give a sense of direction to its employees.

But this is because, like many management concepts, it has ceased to be useful, has been replaced, or has simply been neglected.

Doug Pelletiu
Doug Pelletiu

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