Management by objectives is probably the most widely used goal setting method used by industries around the world.

Management By Objectives (MBO).

Goal setting is an important part of not only individuals lives but an integral part of running a successful company or business.  Goals provide long term vision by using short term motivation, many goals are the instigators of change.

However large companies tend to take a different approach to goal setting within the work place, most of them use a process called Management By Objectives (MBO) this approach allows the company to incorporate the personal goals of its employees with the overall goal as a company.

The MBO process involves managers and subordinates working together in setting and clarifying the goals that the subordinate will attempt to achieve.  They will need to identify any common goals that they share defining each others areas of responsibility in terms of expected results.  MBO can only work if the employees are highly motivated and driven to succeed the targets set by management.

THE ROLES OF MBO

  • MBO allows every employee from the CEO down to the floor staff to know what is happening within the company, what they need to do as individual and an employee to achieve the overall goals of the company.  This allows everyone to be clear about their role.
  • MBO increases the participation and motivation with the employees as they are able to actively participate in setting the goals and standards to which they will be evaluated against.
  • Allows managers to monitor and control subordinates performance by having clear set of goals they want to achieve.

SUCCESS OF MBO

MBO have some minor draw backs though, they tend to need large amounts time, effort and money, for this reason they are normally only used by senior divisions within companies.  They are also prone to becoming focused on one area.  However if implemented correctly they have proven to be a very powerful goal setting process for many companies.

Goal setting is a crucial part of reaching workplace targets.

GOAL SETTING & PERFORMANCE APPRAISAL | MANAGEMENT BY OBJECTIVES (MBO). | PERFORMANCE APPRAISAL. | APPRAISAL INTERVIEW & NEGOTIATION. | USEFUL RESOURCES.