Management by objectives
Management by objectives (MBO) is a process where a manager and employee agree on goals and then develop a plan to achieve them. The goal is to align objectives throughout an organization and increase employee participation and commitment. MBO is a strategic approach to enhance the performance of an organization.
Steps in the MBO process
1. Set goals. See: Goal setting
2. Set realistic goals. SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound.[2]
3. Jointly participate in goal setting, planning, and controlling
4. Provide feedback
5. Collaboration with employees
6. Assess progress
7. Reward excellent performance
8. Encourage improvement
9. Review goals
MBO categorization
MBO objectives can be categorized into three types:
1. Strategic: Broad, general objectives determined by company management
2. Tactical or Team: More specific objectives set for teams or departments
3. Operational or Individual: Specific objectives belonging to an individual
See also
External links
- Management by Objectives (MBO): Learn Its 5 Steps, Pros and Cons, Investopedia
- Management by Objectives (MBO), Corporate Finance Institute
- Management by Whose Objectives?, Harvard Business Review
- The Ultimate Guide to MBO
- Management by objective, Southern Nazarene University
