Management by Objectives (MBO) is a strategic approach to improving an organization's performance. 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. The MBO process revolves around the establishment of organizational objectives and goals of various divisions and subdivisions. The ongoing nature of the MBO process not only responds to the sustained concentration of efforts towards the organization's objectives, but it also helps to modify the objectives to adapt to the changing situation.
Management By Objectives (MBO) is a management model that focuses on the objectives of the organization by establishing a reference point. Management and employees work together to accomplish the same mission by having clear intentions, open communication and shared objectives. Keep in mind that performance evaluation is one of the most important factors in the organization that can help operate certain objectives smoothly. Defining objectives is not enough, an organization also needs a mechanism to implement and monitor those objectives while keeping its employees motivated and an always open communication channel.
Short-term objectives are framed taking into account the feasibility of achieving long-term objectives. If there is a discrepancy between the objectives decided and those achieved, efforts should be initiated to determine the measures to be taken to overcome the problems responsible for the discrepancy. This process allows managers to do the work that needs to be done step by step to allow for a calm but productive work environment. If employees have easily achieved objectives in a defined period of time, managers try to make them challenging but motivating to further improve their performance.
The functions of these managers can be centralized by appointing a project manager who can monitor and control the activities of the various departments. In view of this, the objectives of subordinates should also be set in accordance with the preliminary objectives of the company. This will be an individual discussion in which subordinates will inform managers about their objectives and what objectives they can achieve in a specific time and with what resources. In the goal-based management approach, the most essential step is continuous feedback on results and objectives, as it allows employees to track and correct their actions. The activities carried out under the main objective and the subsidiary objectives are extensively evaluated.
