MANAGEMENT BY OBJECTIVES

WHAT IS MANAGEMENT BY OBJECTIVES? DESCRIPTION:
MBO is defining of objectives for each employee and compare and also direct their performance against the objectives which have been set. It is the aim of MBO to increase the performance of the organisation by matching the organizational goals with the objective of surbodinates through the organization. Ideally, employees receive strong input to identify their objectives, time lines for completion, etc.
It includes continuous tracking of the processes and provide feedback to reach the objectives.

WHO IS PETER DUCKER?
Peter Ducker was the first person to outline Management by Objectives in 1954 in his book `The practice of Management`. According to Drucker, managers should avoid `the activity trap`, getting so involved in their day to day activities that they forget their main purpose or objective. One of the concept of MBO was that instead of just a few top-managers, all managers of an oranization should be involved in strategic planning process, so that implementability of the plan can be improved. Another concept is that, managers should implement a range of performance systems, which are design to help the organization to function well. Management by Objective can be seen to be a predecessor of value based management.

PRINCIPLE OF MANAGEMENT BY OBJECTIVES

• Specific objective for each member.
• Participative decision making.
• Cascading of organizational goals and objectives.
• Explicit time period, and
• performance evaluation and provide feedback.

Management by Objectives also introduced the SMART method of checking the validity of the objectives, which should be SMART.

• Specific
• Measurable
• Achievable
• Realistic, and
• Time-related.