The Pros and Cons of Management by Objectives

The theory of management by objectives (MBO) came about when Peter Drucker sought to increase organizational growth. The idea of using a benchmark to measure the success of an organization’s efforts has many proponents and detractors. But, the fundamental principle behind this approach is a sound one. When used properly, MBO can help an organization achieve its goals and improve its performance. However, it can also have negative effects. Let’s take a closer look at MBO.

One of the biggest problems with MBO is that it focuses too much on individual goals, thereby excluding the big picture. Despite the countless benefits of MBO, its critics argue that the practice is short-sighted and stifles leadership. For example, an organization may create a goal-oriented culture, but the goals that it sets are not aligned with the firm’s overall mission or vision. In other words, the process tends to create an environment of lack of commitment and disengagement.

A key aspect of management by objectives is setting personal objectives. When employees know what is expected of them, they will feel more invested and committed to their jobs. In addition, management by objectives promotes teamwork and collaboration among team members. This, in turn, leads to increased employee commitment and involvement. If implemented correctly, management by objectives is a powerful management tool that can make any organization more efficient. So, the next time you decide to change the way your business runs, consider the management by objectives approach.

Unlike traditional management techniques, management by objectives is an effective tool for improving team performance. With this methodology, you can increase your team’s efficiency and enhance the customer service experience. You can also use it in any department, such as customer service or sales. The possibilities are endless and you’ll find that it improves the overall performance of your organization. When implemented correctly, management by objectives will lead to increased teamwork, reduced finger-pointing, and reduced employee dissatisfaction.

In addition to this, management by objectives should incorporate appraisals of subordinates by superiors. Managers should be rewarded for developing people, not just for meeting targets. Furthermore, managers should not use the phrase “reporting to” if it implies that the superior has accountability for the actions of subordinates. Management by objectives also requires a high ethical standard. This is because of the need for personal responsibility. For example, a superior who is responsible for a subordinate’s performance may not be able to do so.

One major disadvantage of management by objectives is that it does not allow for a healthy balance between the needs and wants of employees. The most powerful drive in a person’s life is to look good in their own eyes. That’s why management by objectives begins with defining a person’s own objectives. What she wants to achieve, where she wants to go, and what makes her feel good about herself are the objectives of the person.