What is management by objective ?

Question

Answer

Management By Objectives is a personnel Management Technique used by the organisations in which managers and workers/employees work together to set, record and monitor goals for a specific period of time.

Answer

Explanation :-

The trerm 'MBO' has coined by P.F Drucker in 1954 when he emphasised on the concept of managing by objective.

MBO can be defined as follows :-

'MBO is comprehensive managerial system that integrated the key of managerial activities in a significant manager which is directed towards efficient and effective achivement of organizational objectives'.

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Answer

Management by Objectives (MBO)

Management by Objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It is a process where both managers and employees work together to set goals and objectives for the organization.

Key Principles of MBO:
• Specific goals: Objectives should be clear, specific, and measurable.
• Participative decision-making: Involves employees in the goal-setting process to increase motivation and commitment.
• Performance evaluation: Regularly assess progress towards objectives to ensure accountability and feedback.
• Feedback and communication: Open communication channels between managers and employees are crucial for successful implementation of MBO.

Benefits of MBO:
• Clarity in goals: Helps in setting clear objectives that align with the organization's overall mission and vision.
• Motivation and engagement: Involves employees in the goal-setting process, increasing their commitment and motivation.
• Improved performance: Regular performance evaluation and feedback help in identifying areas for improvement and achieving better results.
• Enhanced communication: Encourages open communication between managers and employees, leading to better understanding and collaboration.

Steps in Implementing MBO:
1. Set organizational goals: Establish overall objectives that need to be achieved.
2. Cascading goals: Break down organizational goals into departmental and individual objectives.
3. Goal setting: Collaboratively set specific, measurable, achievable, relevant, and time-bound (SMART) objectives.
4. Monitoring progress: Regularly track and evaluate performance towards set objectives.
5. Performance appraisal: Provide feedback and recognition for accomplishments, as well as identify areas for improvement.

Overall, Management by Objectives is a powerful tool for aligning individual and organizational goals, enhancing communication and collaboration, and ultimately achieving better results and success.

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