When it comes to goal-based management, the first step is to establish what is known as Management by Objectives (MBO). This approach uses a set of quantifiable standards or objectives to measure the performance of a company and its employees. These objectives must be INTELLIGENT, meaning they should be specific, measurable, achievable, realistic and time-limited. At the beginning of the year, managers and employees discuss the employee's goals or objectives for the year.
Throughout the year, the supervisor must be actively involved in training and assisting all employees to meet their individual goals and objectives. This process is an effort to be fair and reasonable, to predict performance and judge it more carefully, and presumably to give people the opportunity to motivate themselves by setting their own goals. By comparing actual productivity to a given set of standards, managers can identify problem areas and improve efficiency. Costs decrease and profits increase, but customer service managers are killing the company and have no joy in their work.
Be that as it may, the more complex and difficult the evaluation process and the establishment and evaluation of objectives, the more pressing the clamor for objectivity will be. 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. In recent years, opinion has moved away from placing managers in a formal and rigid system of objectives. 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.
Therefore, the 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.