Management By Objectives | Meaning

What is Management By Objectives?

Management by Objectives or MBO is a strategic strategy to improve an organization’s performance. MBO is a process in which the organization’s goals are created and communicated to the members of the company for the purpose of achieving each target.

Looking at each employee’s performance and development against specified targets forms the basis of every MBO plan. Employees are more likely to perform the responsibilities they have been given if they are involved in formulating goals and determining their course of action. 

Advantages Of MBO

  •   Employees like their duties and responsibilities when they are managed by targets.
  •   The MBO strategy leads to improved collaboration and communication, which is important. It gives employees a clear vision and idea of what they are expected to do. Supervisors provide goals, and each employee is given responsibilities that they must perform.
  •   Every employee is given their own objectives. As a result, each employee feels indispensable to the company and develops a sense of devotion to the company.
  •   Managers have a role in ensuring that subordinates’ goals are aligned with the organization’s aims.