Jeremy Gray - "Practical Solutions to Difficult Problems"
The term 'Management By Objectives' was first termed by management guru Peter Drucker in his 1954 book, The Practice of Management.
Management by objectives (MBO) is a strategic business model designed to improve the performance of an organization. It is a strategy with clearly defined objectives which is agreed by both the management and the employees
Drucker pointed out that employees often lose sight of their objectives because of an “activity trap”. When we get too involved in our current activities, we forget the original purpose.
Peter Drucker had a warning about MBO – he said MBO works if you first think through your objectives – ninety percent of the time you have not.
How to set effective goals:
Involve employees from start-to-finish:
Goals need to be linked to business objectives
Adapt goals in real-time
Goals or objectives in Drucker speak. when set properly, can improve commitment and help clarify an employee’s role which increases engagement and business success.
How to implement MBO:
With organizational and employee goals aligned
The benefits of Management by Objectives
Criticism of MBO include:
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