Management By Objectives (MBO)

Management by Objectives (MBO) is a management system where the management and employees work together to establish goals and objectives for a particular team or department. The concept was introduced by Peter Drucker in 1954. MBO is based on the principle that an organization should have a clear understanding of its purpose, and its key results areas should be clearly defined.

The MBO process consists of five main steps:

• Goal setting: The first step involves setting up specific and measurable goals for the team or the individual. Managers and employees work together to establish these goals.
• Planning: Once the goals are set, the planning process begins. The manager and employee work together to determine the strategies and action plans required to achieve these goals.
• monitoring: The next step involves monitoring the progress towards the goals. The manager and employee regularly review the progress and take corrective action if necessary.
• Evaluating: Once the goals are achieved, the manager and employee evaluate the results. This evaluation process helps to determine if the goals were successfully achieved or not.
• Feedback: Finally, feedback is provided to the employee. The employee receives constructive feedback on his/her performance and suggestions for improvement are provided.

The benefits of MBO include increased productivity, improved communication and collaboration between employees and managers, and a clear understanding of organizational goals and how individual goals contribute to them. It also helps to align employee goals with organizational goals and ensures that resources are being used effectively to achieve those objectives.