Management by Objectives (MBO) is a process in which a manager and employee come together to set and agree on specific performance objectives. This results-oriented approach to goal setting begins with a shared debate to define the objectives, followed by a collaborative plan to achieve them in sequence. This allows managers to adjust the pace of work accordingly and create a more productive environment. Goal-based management uses the company's main objectives to determine employee objectives.
This allows all members of the company to see how their individual tasks relate to the company's main objectives and priorities. Management by Objectives (MBO) is a strategic business model designed to improve the performance of an organization, and was first referred to by management guru Peter Drucker in his 1954 book, The Practice of Management. Once employees are informed of the overall objectives, plan, and strategies to follow, managers can begin working with their subordinates to establish their personal goals. This shows how activity and outcome go together and can dramatically increase productivity.
Performance evaluation is achieved through the participation of interested managers, allowing them to evaluate themselves based on what needs to be done. Objectives should include not only the personal and occupational goals of the individual manager, but also the corporate goal manager and higher participation in common. The typical MBO process places the report manager in the same position as a rat in a maze, which has options between only two alternatives. For example, if there is no comprehensive orientation and support program to help new employees adapt, the pressure on lower-level managers to employ members of disadvantaged minority groups and reduce their turnover can only be perceived by those managers as an empty mockery. Even the best teams are often unable to reach their full potential due to management gaps or an inability to delegate tasks and follow up effectively.
By not having to be continually defensive and aware of the organization's genuine interest in meeting their personal and organizational goals, a manager would be more free to evaluate themselves based on what needs to be done. The less time spent per customer and fewer calls, the better the customer service manager will meet his goals.