Management By Objectives (MBO) is a management strategy that involves setting specific goals for employees and teams, and providing regular feedback on progress. The idea is that this will help to improve performance and achieve organizational objectives.
To implement MBO, management first needs to identify the organization’s goals. These could be short-term or long-term goals and should be specific, measurable, achievable, relevant, and time-bound (SMART). Once the goals have been set, management then works with employees to develop individual or team objectives that support these goals. Progress towards the objectives is monitored and reported back to employees on a regular basis.
There are several advantages of using MBO as a management strategy. First, it can help to improve communication between management and employees. Second, it can provide a clear sense of direction and focus for employees. Third, it can help to increase motivation and job satisfaction, as employees feel that their work is contributing towards the achievement of organizational goals. Finally, it can improve efficiency and productivity, as employees are more likely to achieve objectives if they have a clear understanding of what they need to do.
There are also some potential disadvantages of MBO. One is that it can be time-consuming to implement, especially in larger organizations. Another is that it can lead to a narrow focus on meeting objectives, which could result in other important aspects of the job being neglected. Finally, MBO can be difficult to maintain in the long term, as management may find it hard to keep track of all the different objectives that have been set.
Overall, MBO is a management strategy that can be beneficial but it is important to be aware of its potential advantages and disadvantages before deciding whether or not to use it in an organization.