THE MANAGEMENT BY OBJECTIVES

 THE MANAGEMENT BY OBJECTIVES 



The management by objectives (MBO) cycle is a strategic approach introduced for management to work with their subordinates in a joint effort to magnify the performance of a business organization. This approach was introduced by Peter Drucker in 1954, and then was additionally evolved by numerous theoreticians like Douglas McGregor, George Odiorne, and John Humble. (Thomson, 1998).   

MBO is a process or a framework in which subordinates sit together with their managers to engage in defining their objectives, choosing their strategies to achieve them within a set time period, helps to encourage the subordinates, to identify their personal strengths and weaknesses, bring commitment and responsibility in them. Which will impact on staffs effectively working towards achieving the organizational goals and objectives. 

It is a goal-directed philosophy which helps to estimate the budget of functions of organizations, helps to build communications, group working skills among the staffs . It can be a disadvantage to the organization if it is not planned, implemented properly, it can also bring discomfort, and frustration among the employees.

 The interconnected, independent steps of this process include defining organizational goal, and employee objectives, continuous observations, reviewing, providing feedbacks, and performance appraisal.


1. Define organizational goals: Setting organizational goals in order to use the resources efficiently. 

Example: A manager discusses with his subordinates about the need of conducting business online during the pandemic crisis. Here the defined organizational goal is to develop the business online within a month.


2.Define employee objectives: After creating organizational goals subordinates, supervising managers discuss on personal goals and objectives of a subordinate. 

Example: He asks the subordinates in which way he/ she could contribute towards this goal. Here the staffs are given much space to come up with their ideas, to use their creative minds into the business process. Developing a website, arranging a delivery partner, handling the precautionary safety measures throughout the process, and answering customer queries are some of the personal goals which are assigned by the staffs.

3.Continuous observations on the performance and progress: Managers constantly monitoring the work that is done by the subordinates. 

Example: The manager continuously observes the work done by the staffs. 


4.Performance review: Managers evaluating the performance of the subordinates .

Example: The manager continuously evaluates whether the workers attend to the online orders on time, whether the safety measures are followed properly.


5.Providing feedbacks: Managers providing continuous feedbacks on the workers efforts, actions towards achieving their goals and objectives. 

Example: The manager provides feedbacks on the improvement they should make in the way they sanitize the parcels.


6.Performance appraisal: Evaluating the performance of every staffs individually, and rewarding them for their work.

Example: The manager evaluates the success of the online business after a month, considering the tasks done by the staffs and finds out how well they have performed towards their personal goals and rewards them.


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