There are various management philosophies and types used in the world of business. These types of management differ from one another. In some cases, a few of these management types can be mixed together in order to create something custom for a specific requirement. Management by Objectives (MBO) is one of the frequently used management types. The popularity and the proven results are the main reasons behind everyone adopting this technique for their organization. As valid as it is for many management types, MBO is a systematic and organized approach that emphasizes the achievement of goals. In the long run, this allows the management to change the organization’s mindset to become more result oriented. The Concepts:
The core aim of management by objectives is the alignment of company goals and subordinate objectives properly, so everyone in the organization works towards achieving the same organizational goal. In order to identify the organizational goals, the upper management usually follows techniques such as GQM (Goal, Questions, and Metrics).
In order to set the objectives for the employees, the following steps are followed. * The management chunks down the organizational goals and assign chunks to senior managers.
* Senior managers then derive objectives for them to achieve the assigned organizational goals. This is where senior managers assign the objectives to the operational management. * Operational management then chunk down their objectives and identify the activities required for achieving the objectives. These sub-objectives and activities are then assigned to rest of the staff. * When objectives and activities are assigned, the management gives strong inputs to clearly identify the objectives, time frame for completion, and tracking options.
The Term Paper on The types of organizational change
“Organisational change is an irreversible adoption of any feature of its strucutre, personel, products or processes” (J.Naylor) Today’s business environment is forcing entities for changes. If we would think from corporate point of view it is essential for the companies’ success to be in accordance with new markets demands. On the other hand, individuals are ruling the ...
* Each objective is properly tracked and the management gives periodic feedback to the objective owner. * In most occasions, the organization defines processes and procedures in order to track the objectives and feedback. * At the end of the agreed period (usually an year), the objective achievement is reviewed and an appraisal is performed. Usually, the outcomes of this assessment are used to determine the salary increments for year ahead and relevant bonuses to employees. Activity trap is one of the issues that prevent the success of MBO process. This happens when employees are more focused on daily activities rather than the long-term objectives. Overloaded activities are a result of a vicious cycles and this cycle should be broken through proper planning.
The Focus: In MBO, the management focus is on the result, not the activity. The tasks are delegated through negotiations and there is no fixed roadmap for the implementation. The implementation is done dynamically and to suit the situation. When to use MBO?
Although MBO is extremely results oriented, not all enterprises can benefit from MBO implementations. The MBO is most suitable for knowledge-based enterpriseswhere the staff is quite competent of what they do. Specially, if the management is planning to implement a self-leadership culture among the employees, MBO is the best way to initiate that process. Responsibility of Individuals:
Since individuals are empowered to carry out stretched tasks and responsibilities under MBO, individual responsibilities play a vital role for the success of MBO. In MBO there is a link built between the strategic thinking of the upper management and the operational execution of the lower levels of the hierarchy. The responsibility of achieving the objectives is passed from the organization to each individual of the organization. Management by objectives is mainly achieved through self-control. Nowadays, especially in knowledge-based organizations, the employees are self-managers who are able to make their own decisions. In such organizations, the management should ask three basic questions from its employees. * What should be your responsibilities? * What information is required by you from the management and the peers? * What information should you provide the management and peers in return?
The Research paper on Mbo In Russia Organization Russian People
... MBO already exist within Russian organizations. So, almost each employee is assigned a specialized set of objectives, and in many organizations ... see their personal gain in fulfillment, and accept responsibility. Under such conditions a democratic leadership is possible. We ... welfare states and to start applying the Management by Objectives approach to management. So, I think, once Russia will ...
