management by objectives: an overview
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A brief introduction on the topic of "Management by Objectives" brought to you by http://www.getmomentum.comTRANSCRIPT
An Introduction Management by Objectives
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What it is!Management by objectives (MBO) is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them.
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With an MBO system, you see the job in terms of what its end result should be.Activities are never the primary element, but rather an intermediate step in getting the desired result.
Why it works!
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Prof.Peter DruckerPeter Drucker originated the concept of management by objectives in the 1950s. He wrote about this method in his 1954 book, The Practice of Management.
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Factors such as unrealistic expectations regarding results, lack of commitment by top management, and an inability or unwillingness by management to allocate rewards based on goal accomplishment.
Why it fails!
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While managing by objectives is not a foolproof management strategy, there are ways to make the process of setting your MBO objectives a little smoother. The S.M.A.R.T is one way to help break down the characteristics of an effective set of objectives
Practical Advice
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In any level of an organization, goals should be specific. This means that each objective should include its desire result. For example, a poorly stated goal would be “improve employee performance,” the objective should be “improve employee performance by tracking with monthly rewards system.”
S for Specific
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Objectives in a successful MBO environment must be measurable. There must be a way to look back on the progress of objective and have it be very clear whether it was met or not.
M for Measurable
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While it may seem like a no-brainer, objectives must be achievable. For example, an objective that aims for “100 percent customer satisfaction” is not achievable, as it is not realistic.
A for Achievable
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Realistic objectives are ones that plan for factors that cannot be controlled; that give room for imperfection. Realistic goals are those that can be accomplished with only the tools at the immediate disposal of the employee.
R for Realistic
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It must have a specific ending point. Using the example from above, “improve employee performance,” changes to “improve employee performance by tracking with monthly rewards system within the next 6 months.”
T for Time-based
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MBO has come a long way: from a performance appraisal device, to a tool for integrating individual and company objectives, and finally to a long-term planning mechanism.
Conclusion
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If you plan to implement management by objectives in your organization our software application called Momentum will simplify this process.
More information can be found at www.getmomentum.com.
More Information
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