Management by objectives (MBO) is a process of setting and achieving specific goals and objectives within an organization. It is a management approach that involves setting specific, measurable, attainable, relevant, and time-bound (SMART) goals for employees, and then tracking and measuring progress toward those goals.
The MBO process typically involves the following steps:
- Setting objectives: Managers and employees work together to set clear and specific goals for the organization.
- Allocating responsibilities: Managers and employees are held responsible for achieving specific objectives and are held accountable for their performance.
- Monitoring progress: Managers closely monitor and track progress toward achieving objectives.
- Providing feedback: Managers provide feedback to employees on their progress toward achieving objectives.
- Reviewing and revising objectives: Managers and employees review and revise objectives as necessary to ensure that they remain relevant and attainable.
The MBO approach is designed to align the goals and objectives of individual employees with the overall goals and objectives of the organization, resulting in more effective and efficient use of resources