There are various management philosophies and types used in the world of business. These types of management differ from one another. In some cases, a few of these management types can be mixed together in order to create something custom for a specific requirement. Management by Objectives (MBO) is one of the frequently used management types. The popularity and the proven results are the main reasons behind everyone adopting this technique for their organization. As valid as it is for many management types, MBO is a systematic and organized approach that emphasizes the achievement of goals. In the long run, this allows the management to change the organization's mindset to become more result oriented. The Concepts:
The core aim of management by objectives is the alignment of company goals and subordinate objectives properly, so everyone in the organization works towards achieving the same organizational goal. In order to identify the organizational goals, the upper management usually follows techniques such as GQM (Goal, Questions, and Metrics). In order to set the objectives for the employees, the following steps are followed. * The management chunks down the organizational goals and assign chunks to senior managers. * Senior managers then derive objectives for them to achieve the assigned organizational goals. This is where senior managers assign the objectives to the operational management. * Operational management then chunk down their objectives and identify the activities required for achieving the objectives. These sub-objectives and activities are then assigned to rest of the staff. * When objectives and activities are assigned, the management gives strong inputs to clearly identify the objectives, time frame for completion, and tracking options. * Each objective is properly tracked and the management gives periodic feedback to the objective owner. * In most occasions, the organization defines processes and procedures in...
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