Rewards and incentives for superior performance must be clearly specified in order to ensure compliance. Management by Objectives (MBO) may seem simple, but managers must understand and appreciate it in order to explain it to their subordinates. They must explain what it is, how it works, why it is done, what role it will play in evaluating performance, and how everyone will benefit from it. The more complex and difficult the evaluation process and the establishment and evaluation of objectives, the more pressing the need for objectivity will be. Every organization is a social system, a network of interpersonal relationships.
A person can do an excellent job according to objective measurement standards, but can fail miserably as a partner, subordinate, superior, or colleague. It is common for people not to be promoted for personal reasons than because of technical inadequacies. When looking at this table, all that needs to be done is replacing “MBO” in theory with “Mission Command” and “MBO” in practice with “Detailed Command” to have descriptions that match Peter Drucker's intention for MBO with experience of MBO in the workplace. Drucker emphasized the need for everyone to understand the organization's mission and highlighted the importance of self-discipline and management through self-control. However, this advice was marred by its mandate to “set clear objectives” and by its caution that “if it cannot be measured, it cannot be managed”.
As a result, most companies have been using numerical objectives set from the top down, distributed in a cascade across the organization and monitored by a myriad of key performance indicators (KPIs).Instead of producing the results expected by senior management, this has led to an environment where people are treated simply as objects, means for the purposes of others and not also as subjects, that is, as ends in themselves. In almost all systems operating under MBO, managers set short-term goals, rarely for more than a year and often for a quarter or less. Since management is concerned with getting results, much more emphasis must be placed on the ability to deliver results. The group's discussion with each other and with its superior should include examining the organizational and environmental obstacles to achieving the goals and, in particular, the organizational and leadership support required to achieve the objectives. The key is to know your drawbacks, customize the plan according to your organization, and make sure that everyone is fully in agreement and that the objectives are clear and reasonable before starting. It could be used on its own to address the objective world of the natural sciences, but it was not adequate to address the challenges of the human condition.
The legacy of MBO has been the subject of hundreds of articles, books and seminars by those who promote theory as the panacea for almost all performance problems. Even in the most secure organizational environment, for the reasons already mentioned, it will not be easy for managers to talk about their goals. At the same time, Goal Management has created and continues to create armies of motivated people. It provides organizations with a process, and many professionals say that MBO's success depends on the support of top management, clearly outlined objectives, and trained managers who can implement it. Mission command is not just a set of tools and techniques that can be learned and “applied”.We use MBO as a shorthand for evaluating performance without fully understanding its impact on outcomes including individual performance.
The less time per customer and fewer calls result in better customer service manager performance. This is why both management by objectives (MBO) and command by mission get into trouble when used as tools in organizations. Undoubtedly this is why both management by objectives (MBO) and command by mission get into trouble when used as tools in organizations where people are treated simply as objects rather than subjects. Each MBO program must be examined to determine if it expresses conviction that people must be carried away or if it encourages genuine partnership between employee and organization. The key is to know your drawbacks, customize the plan according to your organization, make sure everyone is fully in agreement on clear objectives before starting. It could be used on its own to address objective world of natural sciences but was not adequate enough for challenges of human condition.