Management by Objectives for the growth of business
The concept of management by objectives or MBO is closely related to planning. MBO plays a key role in the effective functioning of an organization. The essence of MBO is identifying common goals, choosing correct course of action and decision making. When employers and employees work together for the fulfillment of a common goal they can achieve it in a smooth way.
It was Peter Drucker who introduced and popularized the concept of MBO. The concept gains more popularity as it was against the policy of imposing goals and target on subordinates. It suggests that objectives should not be imposed on subordinates but should be decided collectively. This systematic and organized approach allows management to focus on goals and achieve the best possible in a quicker and easier way. A high speed internet connection from providers like Charter Internet can give you more information on management principals and its various strategies.
The main objective behind MBO is to make sure that everyone working for an organization has a clear understanding of the aims or goals of the organization. This in turn makes each person aware of his own roles and responsibilities in achieving those aims. To make the MBO system a success, both the management and the employees should work together in implementing and achieving plans. This automatically improves the standard and position of the organization, when compared to its competitors.
The different levels of MBO process includes defining organizational goals, setting employee objectives, monitoring performance and progress, evaluating performance, providing feedback and performance appraisals.
Defining goals – This is the first step of MBO process. Setting objectives is based on the organizations vision and mission. Objectives are placed after continuous research and decision making process. To set goals or objectives one should have a though knowledge about the project, the process going on there and about the organization.
While setting objectives, one should keep in mind the following factors:-
Objectives should be focused on result not activity
It should be consistent and specific
It should be measurable and time bounded
It should be designed in such a way that people can achieve the targets
Setting objectives for employees - After organizational goals are defined, employees work with management to determine their individual goals. In this way, everyone gets involved in the goal setting process. As part of setting goals for employees, the employers match their goals and resources. This ensures that employees have necessary tools and materials to achieve goals. After allocating men, material and money, the plan is implemented.
Monitoring performance and progress – After implementing the plan, there will be periodic review of the progress. Nowadays online monitoring is practiced in most of the organizations. Computers with Internet connection from High Speed Internet providers are used for this purpose.
To unleash the power of organization and achieve better results, you have to keep in touch with the employees. Two main tools to improve the performance are motivation and better communication and coordination. Motivation increases the empowerment of the employee. This improves the employee’s commitment towards the work and ultimately he will get job satisfaction. Meanwhile, communication and coordination helps in developing and maintaining a healthy relationship between the superiors and the subordinates. Other techniques to improve performance include brainstorming, nominal group technique, and the Delphi technique. We can collect more information about the techniques from the web connected to Charter Internet.
Evaluating performance – Next step is process evaluation. During the evaluation process, a manager reviews the process of each employee on an individual basis. He will discuss the problems faced by the employee during the course of action. Then, explains the ways the employee adopted to control the situation and the level of success. After review process, a feedback will be given. The main purpose of the review process is to analyze the current performance of the employee and give suggestion to improve his performance in the future
Annphilip - About Author:
Ann is a freelancer. She is interested in writing articles about different strategies adopted by organizations in improving their performance. She will do lots of researches before writing articles. Her home computer connected to Charter Internet gives her sufficient information related to her articles.
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