Process Of MBO (Management By Objectives) Explained
“The objectives act as motivational factors and help in increasing employee competence. The setting of goals is not an easy thing. It requires lot of accepted wisdom and preparation. ”
Management By Objectives is used to plan goals for the employees through their own contribution. The objectives act as motivational factors and help in increasing employee competence. The setting of goals is not an easy thing. It requires lot of accepted wisdom and preparation.The very first thing, which ought to be kept in mind for MBO, is to scrutinize the idea or mission of the business. This exercise is carried out at the topmost level. The mission of the organization will be transformed into goals for a given period; it may be for a quarter, half year, a year, 5years or more. In many cases objectives and aims are set to match with the finishing point of a project or with a yearly financial statement.
The goals set at the top level are only preliminary in nature. These goals are set by taking into account company’s achievements and weaknesses and prospects that are available at a particular period. These purposes can be customized while discussing them with assistants. The objectives should not be enforced on the subordinates rather their point of view should be given weight while setting goals.
The second important thing is the elucidation of organizational role. Sometimes organizational goals are not properly illuminated and precise responsibilities are not set for achieving objectives. There should be unambiguous assignment of tasks and fixation of responsibilities.
Then comes the setting of subordinate objectives. The subordinate manager should be informed of broad objectives, planning grounds and line of attack of the company. The superior should then talk about with the subordinate about the objectives, which he can carry out, time frame for them and the wherewithal required.
The viability of such goals for the business should also be discussed. The superior has to play an imperative role while interacting with the subordinate. He should ask questions like what will be his input for the achievement of the organizational goals? How can he perk up his position? What are the snags he faces in reaching his objectives? What changes does he look forward to from the superior? And so on.
The next thing of significance is recycling of objectives. Objectives cannot be set in seclusion. Neither can they be set at the top and communicated to the lower level nor can they be set at the bottom and communicated upwards.
There should be proper interaction and communication at different levels. The objectives set by the department may be higher than the expectations of the higher management but still they may not merge with the objectives of other branches of the company.
Author - DeeKay
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