Definition of Management By Objectives
Any company or organisation aims at improving their performance by forming strategies that would help them make their organisation even better. Management by objectives (MBO) is a model that helps the organisation to form such strategies and convey them to the members of the organisation.
The ultimate aim of this model is to have set goals and strategies as having a clear perspective and clear goals to focus on helps more active participation from all the members of the organisation.
Management by objectives allows you to convey the set goals of actions to your employees and one of the important steps of this model is to evaluate if the given tasks are being performed with efficiency and the desired goals are being achieved. The results are much better if you involve the employees in setting the goals and forming strategies as this gives them a sense of confidence and motivation to perform their roles in the said strategies more efficiently.
What are the steps involved in Management By Objectives?
The MBO model consists of five important steps: Step 1: Determine the goals for your organisation The managers and supervisors of the company analyse what the company needs to achieve in a set time period and work towards setting goals and forming strategies that will help them to achieve the set goals.
Step 2: Convey the objectives to the employees Once the goals are set and strategies are formed the next step is to convey these strategies to the employees and discuss with them while taking their perspective into consideration as well. The employees will discuss what goals they think they can achieve in a given time period.
Step 3: Monitoring the performance and progress The most important step in the MBO model is monitoring the performance and making sure everyone is working to their full efficiency.
Step 4: Evaluating the performance The managers evaluate the performance and review it.
Step 5: Feedback The next step again involves the managing staff of the organisation. After monitoring and evaluating the performance, the managers provide feedback to the members of the organisation which helps them to know their progress and the areas they need to improve in.
To successfully execute the MBO model, the goals and strategies should be conveyed correctly to all the members of the organisations.
