MBO Pyramid
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Management by Objectives (MBO) is a process that defines organizational goals and subordinate objectives throughout all levels in a systematic way. It aims to increase performance by aligning individual employee objectives with strategic goals. Key aspects include goal setting, action planning, and decision making. Employees are involved in defining their own objectives, and incentives are linked to results achieved. The MBO process follows a cycle of reviewing objectives, setting employee objectives, monitoring progress, and evaluating/rewarding performance.
MBO Pyramid
- 2. Process of defining objectives within an organization – Systematic and organized approach – Allows management to focus on achievable goals – Allows management to attain the best possible results from available resources Key features: – Goal setting – Choosing course of action – Decision making Aim: to increase organizational performance by aligning goals and subordinate objectives throughout the organization – Employees more likely to fulfill their responsibilities when they are actively involved in defining objectives Incentives linked with results 12/23/2015 The MBO Concept
- 4. Start period Review and define objectives Set employee objectives Monitor progress Evaluate performance Reward employees 12/23/2015 MBO Cycle
- 5. 12/23/2015 Objective Criteria Is It Specific? Is It Measurable? Is It Appropriate? Is It Realistic? Is It Time-Bound?
Editor's Notes
- #6: Is it specific? Does it clearly talk about one thing, and both the staff member and the supervisor know exactly what output they are talking about. Is it measurable? Can the output be quantified? Is it appropriate? Does the staff member have the power to accomplish the task? Will it work? Is it realistic? Based upon experience and data, can the output be achieved in the allotted time with a given amount of resources? Is it time-bound? Is a specific, reasonable amount of time specified to accomplish each objective?