What is Management by Objectives (MBO)?
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‘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.