What is it? Management by objectives uses a logical structure for decision-making based on previously defined vectors. In other words, the actions of the company's employees are aimed at achieving specific results within a certain time frame.
How does it work? There are several approaches to goal management. The principle of their work is generally similar: it is planning and solving problems to achieve the specified criteria. The main thing is to avoid pitfalls on the way to the goal.
The article explains:
The essence of top benefits of using fusion database management by objectives
Relevance of the management by objectives approach
The main stages of the management by objectives methodology
Pros and cons of the MBO management by objectives model
Management by SMART goals
OKR - Management by Objectives Methodology
PPR Management by Objectives Methodology
Implementation of a management by objectives system
Problems in the implementation of management by objectives and their solutions
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The essence of management by objectives
Goal setting is one of the main properties that distinguishes Homo sapiens from other living beings. This is a key condition for the success of any activity. It is even more surprising that many people do not pay enough attention to clearly defining the goal when starting any work.
Experts have calculated that no more than 13% of employees constantly set priorities in the process of their work. The rest work exclusively within the framework of fulfilling the instructions of the management, spending a lot of time on solving secondary tasks that do not affect the overall efficiency. To a large extent, this negative phenomenon results from the lack of a system for employees to plan their work in the company. In the current realities of competitive struggle, this is an unaffordable luxury.
Setting a clear goal allows you to motivate the team, maintain discipline in it, and set clear criteria for assessing the effectiveness of work. Based on this, you can objectively assess the situation at any time, make the necessary adjustments to it if you deviate from working on the main goal.
The described approach has entered business usage as management by objectives, or, in other words, by results. Both names imply the same thing.
In principle, this system is not new. Peter Drucker first spoke about it as an integral element of management organization in 1954 in the pages of the book "Management Practice". He meant by this system the definition of the goals of the entire enterprise, on the basis of which the goals of each employee are formulated, the implementation of which will bring us closer to achieving the overall result.
The essence of management by objectives
Drucker also noted a number of other requirements that need to be taken into account in this process:
Goal setting should be carried out by the company's management together with employees.
The benchmarks should include both quantitative and qualitative indicators.
Achieving planned results must generate tangible benefits.
Employees need to be regularly informed about how effectively they are working towards their goals.
It is necessary to reward specialists for successfully achieving the set targets.
Ensuring professional growth and development must take priority over the punitive element.
In other words, the concept of management by objectives assumes optimization through the formulation of key indicators that are established through the joint efforts of managers and subordinates. There must also be an adequate motivation system.