Management by Objectives (MBO)
What is MBO and how does it work?
MBO (Management by Objectives) is a performance management approach that involves setting specific objectives in collaboration between managers and employees. Objectives are defined, measurable, achievable, and time-bound (SMART). The process includes regular performance reviews, feedback, and rewards tied to the achievement of objectives. MBO aligns individual and organizational goals, enhances motivation, and improves performance.
How does MBO align individual and organizational goals?
MBO (Management by Objectives) aligns individual and organizational goals by involving employees in the goal-setting process and ensuring that their individual objectives are directly linked to the overall strategic objectives of the organization. This alignment fosters a sense of purpose, increases employee commitment, and ensures that individual efforts contribute to the achievement of organizational goals.