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Management by objectives

In our conceptualization, the MBO as an integrated part of results management process heavily encourages the realization of company’s strategic objectives as well as performs a particular motivation role.  It is an organized and systematic approach to personnel motivation which enables the management staff to concentrate on achievable and obtaining the best possible results.

 

The reason for implementation of the system is optimizing the company’s results by unifying strategic objectives cascaded on each organization cell.

Shortened scheme of management by objectives is presented by below diagram.

After the implementation of  MBO the management staff have the possibility of:

  • Direct stimulation of employees performance effectiveness
  • Monitoring the effects of performance
  • Sustaining employees strengths and paying attention for elements that need improvement
  •  Aiding employees strong sides and paying attention to elements that need improvement
  •  Evaluation of ambitious, measurable and rational indicators of effectiveness  free from managers subjective opinion

Effects of the MBO implementation

  • Aiding the realization of company’s strategic objectives as well as each department and work-stations.
  • Creating attitude and behaviors oriented on work results.
  • Orientating the employees actions under the system of achieving company’s key objectives.
  • Increasing the business conscience and communicating the strategy to all levels of organization.
  • Rewarding for work results
  • Employees have easy access to feedback on the work valuation by the superior.
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