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“Social responsibility objectives need to be built into the strategy of a business, rather than merely be statements of good intentions. Management by objective works, if you know the objectives. Ninety percent of the time you don’t.”  – Peter Drucker

When differentiating between the things we need to do and the outcomes we expect to achieve, we need to understand that the elements that go into managing the process are going to dictate when and how those goals or objectives will be fulfilled.

These goals need to be researched and recorded so that they are not only implemented efficiently, but tracked and refined over time. When using a management method that is based on objectives, as Mr. Drucker has pointed out, it is crucial to plan the process so that we know exactly what the most competent objectives are.

The role of ‘Goals and Objectives’ in the management of ‘Corporate America’

As a company or organization in corporate America, the idea behind having written goals and objectives in place is to support management by instilling a protocol for when a specific event or predicament occurs.

In addition, if both management and the employees take part in the process of setting the goals that need to be achieved, then those goals can be harmonized into an organized process that will coincide with the company’s overall objectives. This will make the management by objective process more focused on personal goals rather that some obscure corporate hierarchy. The key to it all is that these objectives are meant to be coordinated and supervised throughout the organization in a way that creates a uniformity that, when successful, can be duplicated.

During the planning stage, associates are asked to set a few personal/professional goals that can in some way be measured. These personal goals are then communicated with the associates direct supervisor to insure that what they’ve chosen as a goal is both appropriate and track able. This is typically followed by both the supervisor and employee putting the top objectives in writing and setting a date for them to be reviewed in the future.

Finally, a customized reward system should be put in place so that when the reviews take place, the manager doing the evaluation can reward those achieving their objectives.

Driving Outcomes

For the business owner who wants to get his or her business refocused looking into management by objectives might just be the way to go.

Since this process was created as a management tool for managers, the best place to start is at the top as these principles work best when they are adopted with enthusiasm by those implementing them.

On the opposite side of that, management by objective doesn’t work well when it forced upon or imposed. The true benefits reside in the participation of all those involved being part of the planning of those objectives. That’s because the formulating of these measurable objectives becomes a way of training those involved to think in a way that produces noticeable benefits.

Enthusiasm truly is contagious. If the management by objective process is adopted by the owner where it is proven to work well, then that enthusiasm will act as a motivator for the managers to spread the concept throughout the business.

For more on ‘Goals and Objectives’ be sure to visit: Objectiveli.com

8 comments
henryatmail
henryatmail

I too believe, MBO cannot be achieved forcefully. Genuine participation is key behind it. Many organizations fail to apply this successfully as they hesitant to accept change. Others cannot create a proper environment. There are certain prerequisites to follow; one of them is communication between subordinates and the superiors. And connecting individual performance with the setting goals is another effective option.

bartonjenny
bartonjenny

Working within a large and complex external environment affects a business in terms of its social responsibility, its social responsiveness and ethical behavior. Social responsiveness refers to the ability of a firm to implement policies and take part in activities that would benefit both society and the firm. Again, this need to measure social responsiveness led to the development of social audits. So, all these show the growing concern among major firms about the social responsibility. Therefore, what Peter Drucker had said, really important today to implement while setting organizational goals.

Stas Gulinsky
Stas Gulinsky

I have always wanted to establish MBO's in my company, extremely difficult to manage that without any software. Thanks to Objectiveli now I can.

Objectiveli
Objectiveli moderator

I think the key is that Objectiveli aligns Goals, and Objectives. Its easy to modify and Goals and Objectives, and still maintain the sync between the creator and the assignee of the Objectives - increasing fulfillment and driving outcomes.

PeterBuscemi
PeterBuscemi

This post is spot on.  Driving outcomes must be ingrained into the culture of the organization.  If there its mutual benefit for both parties to adopt and adhere to a process (to drive outcomes), the probability of changing behavior increases dramatically and adoption will proliferate across the organization.

Objectiveli
Objectiveli moderator

 @4QMPT Peter check out this blog entry. I am using LiveFyre for making the Blog comments social.

Marc Anthony
Marc Anthony

Managing an organization effectively requires the formulation of clear objectives. Objectives serve as roadmaps for managerial effort and action.MBO is certainly not a simple process that can be quickly implemented. Its implementation requires a change in the very culture and environment of organizations. In addition to setting realistic goals, managers must carry out regular performance reviews and provide feedback to subordinates.

Trackbacks

  1. […] demanding as the Management by Objectives (MBO) style of management is, it is one that is so widely employed because of the rewards that it […]

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  3. […] individual that is working towards the organizational goals that have been set. This is exactly how Management by Objectives works in maintaining a high level of communication and cooperation between management and […]