3 Characteristics of Management by Objectives

Management by Objectives (MBO) is a management technique that involves establishing measurable personal work objectives that align with overall organizational objectives. Learn more about its 3 main characteristics.

3 Characteristics of Management by Objectives

Management by Objectives (MBO) is a management technique that involves the supervised establishment of measurable personal work objectives that align with the overall objectives of the organization. It is a process in which the objectives of the organization are defined and transmitted by management to the members of the organization with the intention of achieving each objective. MBO's emphasis is on improving performance in areas that are critically important to the organization as a whole. This participation provides an opportunity to influence decisions and clarify working relationships with superiors, subordinates and colleagues.

The most essential step in goal-based management is continuous feedback on results and objectives, as it allows employees to track and make corrections to their actions. By identifying key result areas (KRAs), MBO ensures that due attention is paid to priority areas that have a significant impact on the performance and growth of the organization. The role of each department towards key areas and subclave 15 was also specified. MBO is an organization's management systems approach.

It tries to integrate the individual with the organization and the organization with its environment. Seeks to ensure the achievement of personal and business objectives by creating a congruence of objectives. Emphasizes the initiative and active role of the manager who is responsible for achieving the objectives. According to Koontz and Weihrich, “Management by objectives is a comprehensive management system that integrates many key management activities in a systematic way and that is consciously directed towards the effective and efficient achievement of organizational and individual objectives.

According to Terry and Franklin, “A managerial objective is the intended objective that prescribes a defined scope and suggests a direction for a manager's planning efforts. Subordinate managers should be informed of the company's overall objectives, planning assumptions, and strategies. Final approval of goals should be based on what is reasonably achievable with stretch and pull, what is consistent with the objectives of other managers in their functions, what is consistent with the long-term objectives of the organization, and what is consistent with available resources. Chakravarty defines it as: “MBO is a non-specialized, results-focused operational management process for the effective utilization of the organization's material, physical and human resources through the integration of the individual with the organization and the organization with the environment. The three main characteristics of management by objectives are: integration of individual with organization; emphasis on initiative and active role of manager; continuous feedback on results and objectives.

Doug Pelletiu
Doug Pelletiu

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