How To Make Management by Objectives Effective?

October 24, 2012 — Leave a comment

Here are some strategies to make Management by Objectives effective;

Support from all: Executives may be keen to insert an Management by Objectives program into the organization, but it will only work if every member of management is on board with the plan. It’s not only management that have to buy in, though, with every single employee needing to understand what is needed to make it work and then cooperating every step of the way. They really have to feel that Management by Objectives is a program that benefits all as opposed to something that they are being force fed.

Acceptance of Management by Objectives program by managers: Before the MBO program is implemented, managers must accept in their minds that is it a program that can deliver exactly what it promises. If they have that belief, they will be more inclined to put in the effort to make it work, and will make Management by Objectives effective. If instead they are forced to accept the new program, they will have difficulty seeing any value in it, which in turn is likely to affect their level of involvement.

Training of managers: Since Management by Objectives differs from any other management style, existing bosses must be brought up to date with the philosophy of Management by Objectives. They need to understand how the principles of MBO can be integrated into the current company philosophy. This training is a crucial part of the process, especially since it’s the manager and employees that are going to be responsible for setting the majority of goals and objectives.

Organizational commitment: Management by Objectives is not a method that should simply be adopted in order to be current. It relies on everyone playing their part and switching their mindset from planning to work to planning on goal achievement. Koontz put it best when he said, “An effective program of managing by objective must be woven into an entire pattern and style of managing. It cannot work as a separate technique standing alone.”

Allocation of adequate time and resources: Even the best planned Management by Objectives program requires a minimum of 3 to 5 years before it will yield real positive results. What that means is that managers and employees should not employ Management by Objectives thinking that it will be a quick fix solution. It takes time and the correct resources for any Management by Objectives program to work.

Provision of uninterrupted information feedback: Everyone, from the top on down, should have access to regular reports in order to see how goal performance is progressing. Mangers should use that information to ensure that their employees have all the help and resources they need in order to succeed. They should also be sure to compliment and encourage when those goals are being met, as that is the easiest way to maintain a high level of motivation.


Next up Limitations of Management By Objectives (MBO)

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Ritu Raj

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Ritu Raj is a serial entrepreneur dedicated to bringing innovative services and systems to market, which create new experience for people at the same time makes a difference in their lives. Ritu has been in Information Technology for 25 years. In the past he has founded successful companies like OrchestratorMail, WagHotels (Largest Chain of Dog Hotels in the world) and Avasta (Pioneered Cloud Computing, acquired by Navisite). Ritu was a Partner at Accenture and a Senior Executive at TMP Worldwide.

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