|
Setting Objectives
In Management by Objective (MBO) systems, objectives are
written down for each level of the organization, and individuals are given
specific aims and targets.
Managers need to identify and
set
objectives both for themselves, their units, and their organizations. Ensure
that you set the right objectives if you want to
achieve the
right results.
Results-based Leadership
The objectives should be achievable and challenging. Never set your staff
unachievable targets – it will be demoralizing for them.
"The principle behind this is to ensure that
people know what the
organization is
trying to achieve, what their part of
the organization must do to meet those aims, and how, as individuals, they
are expected to help. This presupposes that organization's programs and
methods have been fully considered. If they have not, start by constructing
team objectives and ask team members to share in the process,"
writes Robert Heller.1
"The one thing an MBO system
should provide is focus", says Andy Grove who ardently practiced MBO at
Intel. So, have your objectives precise and keep their
number small. Most people disobey this rule, try to focus on everything, and
end up with no focus at all.
For MBO to be effective,
individual managers and
team leaders must understand the specific objectives of their job and
how those objectives fit in with the
overall company objectives set by the
board of directors. "A manager's job should be based on a task to be
performed in order to attain the company's objectives... the manager should
be directed and controlled by the objectives of performance rather than by
his boss," writes Peter Drucker.1
The managers of the various units
or sub-units, or sections of an organization should know not only the
objectives of their unit but should also actively participate in setting
these objectives and make responsibility for them.
The review mechanism enables
corporate leaders to measure the performance of their managers, especially in the key
result areas:
marketing;
innovation; human organization; financial resources; physical resources;
productivity; social responsibility; and
profit requirements.
However, in recent years opinion
has moved away from the idea of placing managers into a formal, rigid system
of objectives. Today, when maximum flexibility is essential, achieving the
objective
rightly is more important...
More
|
, Peter Drucker