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Management by Objectives

What is Management by Objectives (MBO)?

Management by Objectives, also famous as MBO, is defined as the managerial tasks carried on by the employees, supervisors, manager, strategic level people, and the company as a whole to achieve certain point goals or objectives. In other words, put going by the goals and targeting the targets is another name of management by objectives.

It is necessary to bear in mind that the MBO is strategic. As the people sitting at the top chairs do want the accomplishment of certain objectives predefined, set, executed, and agreed upon. The objectives are there for achievement but towards the vision completion.

The roadmap from mission (the very reason of being of an organization) to the vision (what you want to be) is taken task via MBO. It is highly pertinent to mention here that the objectives are to be very clearly communicated to the organizational members by the strategic level say the employer(s).

What are the important steps in MBO?

The important steps in MBO that should be followed are as mentioned:

What are the benefits of MBO?

Below mentioned are the benefits of the MBO:

What are the limitations attached to MBO?

The limitations attached to MBO are:

Summarizing Management by Objectives (MBO)

The key understandings about the MBO are that the managerial level employees get works done from individual workers providing them a series of tasks that are aligned with the organizational as well as employee’s self-set objectives concerning professional lives. It is the way of the clear understanding for the employees about the management’s expectations from workers.

MBO is a course of action whereby the individual goals and organizational goals are related to key results together. In the MBO process, the team members have clearly defined company goals, roles and responsibilities; and performance management standards.

Several organizational structures have diverse work environments and human resource needs for specific goals, hence the best practice of management in MBO is to identify, communicate, agree upon; and administer the targets. Recognize, appraise, and benefit your employees for what they have so far done for you. Review, rectify, and point out the work and not an employee; and do as required as per your company’s progressive needs for being a successful employee cum employer having a sense of ownership via MBO.