The “management by objectives” (MBO) approach, in the sense that it requires all managers to set specific objectives that must be achieved in the future, and encourages.
Management by objectives(MBO) is a strategic approach to improving the performance of an organization. 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. 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.
Setting goals is not only critical to the success of any company, but it also serves a variety of purposes. Ongoing feedback is complemented by frequent formal evaluation meetings in which superiors and reports can discuss progress towards objectives, leading to more feedback. While the management approach by objectives is necessary to increase the effectiveness of managers, it is equally essential to monitor the performance and progress of each employee in the organization. Within the framework of the MBO, performance evaluation is achieved through the participation of interested managers.
In the management by objectives approach, the most essential step is continuous feedback on results and objectives, since it allows employees to track their actions and correct them. The Management Study Guide is a complete tutorial for management students, where students can learn basic and advanced concepts related to management and its related subjects. 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. 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.
An important step in the MBO approach is the monitoring and evaluation of the performance and progress of each employee compared to established objectives.