Management by Objectives

Topics: Management / Pages: 2 (519 words) / Published: May 2nd, 2014
Management by Objectives
What is MBO?
Management by Objectives (MBO) is also known or referred to as Management by Results (MBR). Management by Objectives is a process whereby the objectives in an organization are defined in order to help the management of the organization and the employees to agree on the same.
The concept and the term was coined and popularized by Peter Drucker in the book, The Practice of Management in the year 1954. The essence of management by objectives lies in mutually agreed upon goals to be achieved, choosing and planning the course of action followed by impeccable decision making. With regards to the same, the management must realize and understand the performance standards and measurement of the employees. It is better to involve the employees while setting the goals and decide on the course of action so that the responsibilities bestowed upon them are accomplished successfully.
The system of management by objectives involve both the seniors and juniors identifying and agreeing to a common set of goals, understand the responsibility areas and devise a plan to implement in order to achieve the goals.
Features
As mentioned, management by objectives is a mutual process of achieving a company's target and goals.
The features of this process include:
a. Motivation provided to employees to identify their strengths and increase the level of goals set for themselves, thereby providing opportunities of self growth
b. Improved coordination and communication skills between the employees as well as the seniors and maintain a cordial relationship amongst each other
c. Better clarity of goals
d. Better motivation and realization of self set goals rather than the ones imposed on by others
e. The goals are sync with the organization's annual targets
f. The common goal for the organization indicates a directive principle of management
About Objectives
The objectives that are set by the organization mainly include a series of activities

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