Management by objectives (MBO) is a popular management concept framework that is designed to meet the needs of today's fast-growing businesses and fast-paced work environments. It is a process of setting objectives in the organization to give employees a sense of direction and purpose. MBO objectives are created by managers and subordinates working together to achieve common goals. The term Management by Objectives refers to the creation of tangible goals for an employee to achieve to improve the organization. The advantages of MBO include providing employees with a sense of direction, aligning individual goals with organizational goals, and creating a system for measuring performance.
It also helps to motivate employees and encourages them to take ownership of their work. Additionally, it can help managers identify areas where improvement is needed and provide feedback on how well employees are meeting their goals. However, there are some drawbacks to MBO, such as placing too much emphasis on the goal rather than the plan to achieve the goal, disregarding environmental factors, and neglect of the goal and plan by employees and management. To counteract these drawbacks, it is recommended that managers combine MBO with other models such as walking around management (MBWA) to reduce MBO gaps. When it's time to inspire your team and breathe new life into your organization, consider incorporating goal-based management into your company culture.
Managers should also consider setting achievable goals within the established time frame when setting new goals. This will help ensure that employees are motivated and have a clear understanding of what is expected of them. Management by objectives (MBO) is an important component of any company's professional management style, which has resulted in commendable growth. It is a supervised and managed activity so that all individual objectives can be coordinated to work towards the overall objective of the organization. By using MBO in combination with other models, organizations can ensure that their employees are motivated and have a clear understanding of what is expected of them.