Management by Objects (Mbo's)

Identify and Discuss Management by Objects (MBO’s) and Design Scorecard Management by Objectives, or MBO as it is affectionately called, is a concept expressed by Peter Drucker more than 50 years ago. This strategy for managing people, which focuses on managing teams based on their ability to complete individual and team goals, has been used in larger organizations since its inception. Small to midsize organizations, however, can also benefit from adopting this strategy, particularly if you also take on the S.M.A.R.T. (specific, measurable, attainable, realistic, and time-linked) method of implementation. According to Drucker (1954), managers should “avoid the activity trap”, getting so involved in their day to day activities that they forget their main purpose or objective. Instead of just a few top managers, all managers should: participate in the strategic planning process, in order to improve the implement ability of the plan, and implement a range of performance systems, designed to help the organization stay on the right track. The MBO process starts with organization defining its objectives. The process of strategic planning, goal setting, or visioning generates from its process a set of objectives that the organization should strive to achieve. From there it is up to the individual departments to form their objectives, most if not all of which should align and support the organizational objectives. Individual objectives are the established to support the departmental objectives. MBO is designed to improve the management process and maximize the effectiveness of the member of individual teams (Bogue, 2005). You need to explain that the MBO process is focused on helping team members understand the individual roles they play and how their jobs contribute to company success. By focusing on the message that MBO is meant to help the employee assess and prioritize efforts to make certain those effects are focused on the bottom line and organizational values.

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