Management By Objectives

MBO or Management By Objectives, is a strategic management approach where objectives and goals are proactively developed by interacting between managers and employees to inclusive of the organizational objectives. We will perform this process by establishing specific, measurable, achievable, relevant, and time-bound (SMART) goals. Managers give direction and take assistance while employees bear the onus of their target achievement. Ongoing performance reviews and feedback will help us track progress and find a way to fix mistakes as they come up. Employee commitment, discipline, and inspiration are achieved through MBO, and each employee knows they play a part in achieving success for the company. Imposing an organization goal setting and performance measure technique will definitely lead to a better communication flow, coordination, and performance management within an organization, thereby increasing productivity and results.

Example

MBO is seen in a scenario where a quality assurance team in a software development organization want to improve their product. The team discuss collectively with Each other to set objectives like decreasing bug count by 20% and improving the customer's satisfaction rate by adding user-friendly features. Every team member integrates the team goals on which other individual goals are dependent like a developer emphasizing on writing more articulate and clean code. At the same time, a tester gives more attention to the thoroughness of the testing procedures. Frequent meetings of a monitoring nature are carried out to review the attainments and, if necessary, adjust strategies. Towards the quarter’s end, the team judges its performance with the help of a predetermined set of metrics, analyzes the successes and discuss where there is room for further improvement.