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.
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.
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 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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