Briefly describe the evolution and need of ‘Management by Objectives’ (MBO) and it’s process

Management by Objectives (MBO) is a management approach that was developed in the 1950s by management guru Peter Drucker. It involves setting specific, measurable goals for employees and then tracking their progress towards achieving those goals. The MBO process is based on the idea that employees are more motivated and productive when they have clear objectives to work towards and are held accountable for achieving them.

The need for MBO arose as a response to the changing business environment in the 1950s and 1960s, which was characterized by rapid growth, increased competition, and a shift towards more complex and diversified organizations. Traditional management approaches that relied on top-down decision-making and control were no longer sufficient to manage these complex organizations. MBO provided a way to align the goals of individual employees with the overall objectives of the organization, and to give employees more autonomy and responsibility for achieving those goals.

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The MBO process typically involves the following steps:

Setting objectives: Managers and employees work together to set specific, measurable objectives that align with the overall goals of the organization.

Developing action plans: Employees develop action plans that outline the specific steps they will take to achieve their objectives.

Monitoring progress: Managers monitor employees' progress towards their objectives and provide feedback and support as needed.

Evaluating performance: At the end of the performance period, managers evaluate employees' performance based on their achievement of the objectives.

Providing feedback: Managers provide feedback to employees on their performance and discuss areas for improvement and opportunities for growth.

Setting new objectives: The process begins again with the setting of new objectives for the next performance period.

Overall, the MBO process helps to create a more goal-oriented and performance-driven organizational culture, and provides a way to align individual employee goals with the overall goals of the organization.

What is MBO and its process

MBO stands for Management by Objectives. It is a management approach that involves setting specific, measurable goals for employees and then tracking their progress towards achieving those goals. The MBO process is based on the idea that employees are more motivated and productive when they have clear objectives to work towards and are held accountable for achieving them.

The MBO process typically involves the following steps:

Goal Setting: Managers and employees work together to set specific, measurable objectives that align with the overall goals of the organization.

Action Planning: Employees develop action plans that outline the specific steps they will take to achieve their objectives.

Monitoring and Review: Managers monitor employees' progress towards their objectives and provide feedback and support as needed.

Evaluation and Appraisal: At the end of the performance period, managers evaluate employees' performance based on their achievement of the objectives.

Feedback and Coaching: Managers provide feedback to employees on their performance and discuss areas for improvement and opportunities for growth.

Setting New Objectives: The process begins again with the setting of new objectives for the next performance period.

What is the need of MBO

The need for Management by Objectives (MBO) arises from the following factors:

Alignment of Objectives: MBO provides a way to align the goals of individual employees with the overall objectives of the organization. This helps to ensure that everyone is working towards the same goals and objectives, which in turn can lead to increased productivity and better organizational performance.

Clear Goals: MBO provides clear and specific goals to employees. This clarity can help to increase motivation and performance by giving employees a sense of direction and purpose.

Employee Involvement: MBO involves employees in the goal-setting process, which can help to increase their sense of ownership and responsibility for achieving the goals. This can lead to increased engagement and commitment to the organization.

Feedback and Evaluation: MBO provides a way to regularly monitor and evaluate employee performance against specific objectives. This feedback can help to identify areas for improvement and opportunities for growth, which in turn can lead to increased employee satisfaction and retention.

Performance-based Culture: MBO helps to create a performance-based culture by setting clear expectations and holding employees accountable for achieving their goals. This can help to improve overall organizational performance and create a culture of continuous improvement.

In summary, MBO provides a structured approach to goal-setting and performance management that can help to increase alignment, motivation, engagement, and overall organizational performance.

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