Management by Objectives

Introduction

For this assignment I have chosen to expand on the topic of managing performance, namely, management by objectives.

After further study of performance management systems, I felt a keen interest and familiarity with the idea of this results method of review. My intention is not to compare methods (results, trait, and behavior) and say one way is better than another. My first impression though, is that a results method does have the interests of the organization in mind over the others. But again, I am not making an argument for either method. Particularly, what I do like about management by objectives is that it aligns the role, duties, and tasks of an employee to the objectives of the organization; using goals as the catalyst to meet those objectives. Goal setting is something I have believed in for some time, personally and professionally. Within this assignment I plan to delve deeper into management by objectives, state my personal thoughts on the subject, weigh its pros and cons, and build on my personal and business foundation.

First let us define management by objectives (MBO); Gary Dessler and Fredrick A. Starke in their book Management, Principles and Practices for Tomorrow’s Leaders, (Second Canadian Edition) define MBO as: A technique in which the supervisor and subordinate jointly set goals for the latter and periodically assess progress toward those goals. Wikipedia.org similarly defines MBO as: a process of agreeing upon objectives within an organization so that management and employees agree to the objectives and understand what they are. To me, both definitions sound like a fun and proactive method that can become empowering to an employee. Anyone who has set a goal, big or small, and achie...

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... appealing and surely what made it popular are its strategic planning characteristics. It allows workers at “bottom” levels to play an active role in the direction of the company. Improved performance almost becomes a spinoff of the process, not its sole purpose.

I am very happy and encouraged from my added research into the subject of MBO. Initially, my knowledge of the subject was based on the performance management chapter and the limited section on the subject. Being a goal oriented individual, I assumed that this management tool could be successfully applied almost seamlessly. This assumption has been proven wrong as I did not take into account the settings and behaviors of the individuals applying the system. A system such as MBO can become easily corrupted. That said, if an organization works past user limitations, MBO is an excellent and worthwhile venture.