Management by objectives is a commonly used tactic in the world, where it operates under the name of MBO, i.e. Management by Objectives. It is based on the definition of different types of hypotheses and then on the search for their implementation. The key question in this approach is the degree of difficulty of the individual tasks. Each of them should be characterized by a moderate level of affordability and, moreover, should be properly specified. The objective given must encourage the employee to achieve it, and therefore cannot prove to be too complicated. The reward system for the completed project or task is also extremely motivating. Thanks to this, employees can happily achieve the next goals of the company, satisfying their own need for personal development and recognition by others.
The MBO strategy is sometimes used in various types of organizations, institutions and businesses, where it is modified according to the needs of a given entity. However, some factors remain the same regardless of the nature of the economic or administrative unit. They create a solid base from which Human Resource Management it brings the expected results by setting objectives. A very important element in the initial stage of implementing this strategy is the strong commitment of the management staff. It is within his competence to define smaller tasks for each employee, as well as to distribute the assumptions set by the management or the owners.
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Individual goalsmentioned above are another important part of the MBO system. If each of the employees knows the scope of his tasks and knows exactly what intentions he should pursue, he can independently plan the course of action. It is very important here to allow employees a certain freedom in the accomplishment of their tasks. Clear goal guidelines are enough to keep individuals focused on results. Managers must have everything under control, so they must regularly evaluate the performance of their employees. The evaluation of effectiveness is the last element of the strategy, called: management by objectives.
Management by objectives – how to implement them in your company?
In order to achieve the best possible results at many levels of business operation, changes should be introduced in the area of personnel management. In this case, a holistic approach to this issue is extremely important, which means implementing changes at all levels of an administrative or economic unit. Employees and senior officials must systematically perform their work according to objectives, because only then will it be possible to verify team effectiveness. Sometimes making assumptions is unreasonable, for example when employees perform simple, repetitive activities that cannot be changed, therefore in these exceptional situations it is recommended to exclude certain sections from the planning.
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When the decision-making units indicate the field of intervention of the MBO strategy, they can move on to the definition of different types of objectives of the company. At the beginning, it is worth considering the long-term plans of the business and, based on them, preparing a list of tasks thanks to which they will be achieved. These, in turn, should be broken down into smaller activities and assigned to individual people or teams. Designate individual goals, it should be remembered that they relate to the company’s long-term projects. In this way – small steps method – the company’s future assumptions will be respected.
Management by objectives requires management to have some degree of trust in its employees. The premise of the MBO system is to pay particular attention to the effects of the work, and not to the modalities of its implementation. However, the superior must observe the process of striving to achieve the goal in order to obtain information about the stage at which the subordinate is. Contrary to appearances, greater freedom in the performance of duties translates into better results, because the employee can decide on the methods of action. In addition, well-defined objectives of moderate difficulty minimize the risk of failure.
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Why is it worth using management by objectives?
Human Resource Management through the implementation of business assumptions, it brings many benefits. Undoubtedly, the level of employee involvement in the execution of assigned tasks increases. It is the result of allowing employees a certain independence, thanks to which they have a feeling of real influence on the realization of the company’s key assumptions. In the case of an organization, it becomes much easier to observe progress in achieving goals. Since each employee is required to work on a specific task, it is easy to check who is responsible for both success in a given area and possible failure.
The effectiveness of the MBO strategy means that more and more administrative and economic units decide to management by objectives. As a result, the company has clearly defined assumptions, the realization of which is aimed at using the method of small steps. Individual tasks are carried out by extremely creative employees at work. As you can see, this method has a positive effect on the operation of the company and the development of employees.