Enhancing Employee Performance with Management by Objectives
Management by Objectives (MBO) is a strategic process introduced by Peter Drucker that fosters collaboration between management and employees to set clear goals, improve performance, and drive success. By involving employees in goal-setting, decision-making, and performance evaluation, MBO enhances employee engagement and productivity in achieving organizational objectives.
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Presentation Transcript
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. The process of setting objectives in the organization to give a sense of direction to the employees is called as Management by Objectives. It refers to the process of setting goals for the employees so that they know what they are supposed to do at the workplace. The concept of Management by Objectives (MBO) was first given by Peter Drucker in 1954 book The Practice of Management . It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed.
An effective management goes a long way in extracting the best out of employees and make them work as a single unit towards a common goal. Management by Objectives defines roles and responsibilities for the employees and help them chalk out their future course of action in the organization. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee s actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by responsibilities. them, they are more likely to fulfil their
Superior-subordinate participation: MBO requires the superior and the subordinate to recognize that the project/activity. They must be jointly agree and write out their duties and areas of responsibility in their respective jobs. Joint goal-setting: MBO emphasizes joint goal- setting that are tangible, verifiable and measurable. The subordinate in consultation with his superior sets his own short-term goals. However, it is examined both by the superior and the subordinate that goals are realistic and attainable. In brief, the goals participation of all. 1. development of objectives is a joint 2. are to be decided jointly through the
3. Joint decision on methodology: MBO focuses special attention on what must be accomplished (goals) rather than how it is to be accomplished (methods). The superior and the subordinate mutually devise methodology to be followed in the attainment of objectives. They also mutually set standards and establish norms for evaluating performance. 4. Makes way to attain maximum result: MBO is a systematic management available resources by focussing on attainable goals. It permits lot of freedom to subordinate to make creative subordinates and ensures good performance from them. and rational attain technique maximum that results allows from to decisions on his own. This motivates
5. Support from superior: When the subordinate makes efforts to achieve his goals, superior's helping hand is always available. The superior acts as a coach and provides his valuable advice and guidance to the subordinate. This is how MBO facilitates superior objectives/targets set. effective and communication for between subordinates achieving the
