You must ensure that you set the right
objectives if you want to achieve the right results.
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
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
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
objectives and ask
team members to share in the process," writes Robert
"The one thing an MBO system
should provide is
focus", says Andy Grove who ardently practiced
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
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
measure the performance of their managers, especially in the key
organization; financial resources; physical resources;
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
rightly is more important...