What is Management by Objectives (MBO)?

What is Management by Objectives (MBO)?

‘Management By Objectives’ is the strategic process of setting organizational goals with reciprocated responses from both employees and management. The term ‘Management by Objectives’ was coined by Australian-American management author?Peter Drucker?in his book ‘The Practice Management’ in 1954.

Management By Objectives is designed by aligning organizational goals with the overall employee objectives to provide a directive pre-defined conduct to accomplish the vision of the business in the future.

It is a strategic approach to enhance the efficiency and effectiveness of the organization and remove any ambiguity.

The MBO process follows a ‘SMART’ approach to set organizational objectives. The SMART goals include:

S – Specific:?It signifies a clearly defined set of goals that are constituted by the organization to assist employees in functioning with clarity and avoiding complexity. It emphasizes specific goals rather than generic ones.

M – Measurable:?It implies that organizational goals to be framed must be flexible to align with alterations in the future and should have measurable traits for evaluation.

A – Achievable:?It signifies the goals must be attainable. It should be challenging enough, but with achievable traits.?

R – Realistic:?It signifies that the goals are expected to be realistically achievable in a given frame of time with adequate available resources.

T – Time Bound:?The goals to be set must be time bound or have deadlines. Having a specified defined time limit for accomplishments will also avoid work overdue.

Continue reading here for complete process and various advantages of MBO.

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