What is the Meaning of Management by Objectives?

Management by Objectives (MBO) is a process in which a manager and an employee agree on specific performance objectives and then develop a plan to achieve them. Learn more about MBO meaning & benefits.

What is the Meaning of Management by Objectives?

Management by Objectives (MBO) is a process in which a manager and an employee come together to agree on specific performance objectives and then develop a plan to achieve them. It is designed to align objectives across the organization and drive employee participation and engagement. The term management by objectives refers to the creation of tangible goals that an employee must meet to improve the organization. This system is used to improve employee performance, as management and employees create objectives together. Unfortunately, many organizations are making this problem worse by promising young people that they will have challenges because they assume that these employees will be challenged by management goals.

As a result, there are few avenues within the organization to talk about this conflict, and managers try to suppress their desires. Therefore, the objectives should include not only the personal and occupational goals of the individual manager, but also the manager of corporate goals and superior participation in common. Management by objectives (MBO) is a personnel management technique in which managers and employees work together to set, record and monitor goals over a specific period of time. My own observation leads me to believe that managers perceive others as a hostile and aggressive act that, unconsciously, feels like hurting or destroying the other person. For example, in a plastic manufacturing company, a performance-related middle management bonus plan proved to be very unsatisfactory.

If there were none, both managers and their superiors could have made an earlier and more comfortable decision about the separation. 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. If the individual executive cannot be trusted in relationships with subordinates, then he cannot have his respect or trust in any case, and the ordinary MBO evaluation process simply serves as a managerial pressure device. Other disadvantages include placing too much emphasis on the goal rather than on the plan to achieve it, the lack of attention to environmental factors, and the neglect of the goal and plan by employees and management. However, because of their dynamics, managers and employees are forced to maintain effective communication, resulting in stronger relationships and positive work environments.

Doug Pelletiu
Doug Pelletiu

Total bacon ninja. Avid travel scholar. Evil bacon advocate. Freelance social media scholar. Devoted beer practitioner. Incurable bacon guru.

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