Business

Management by Objectives for 2021

For senior leaders and managers who deal with large organizational goals and targets, it becomes imperative to have a crystal clear vision about how they will organize & action all their resources – human, organizational, mechanical, monetary and others. By their very nature, organizational goals are complex and have multiple factors woven into them resulting in the final outcome. And even a single factor mistimed or going wrong can cause immense obstacles in achieving the goal. To manage these factors, drive them in concert and deliver as per the timelines specified, all the teams and personnel involved need to be managed in a specific manager. Primarily, MBO is a strategic approach to enhance the performance of an organization. 

Precisely keeping this in view, Management Guru Peter Drucker coined the phrase “Management by Objectives” (also called management by Results), in his book “The Practice of Management”. Amongst other core principles, Drucker lays out the idea, concepts, framework, and details how this mindset can be developed and implemented, and goals achieved. The organizational goal is divided into time-sensitive objectives which, put together, help realize the goal. To put it simply, each objective is driven with an eye on deadlines and the sum of these objectives is the organizational goal that drives efficiency through right communication

And even in 2021, as businesses face change, challenges and competition, the basic principles of MBO remain constant – let us take a closer look at these steps to achieve better performance of an organization. 

Organizational Goals

Defining organizational goals in terms of outcome, targets and timelines is the very 1st step for the leaders of the organization. Taking into consideration the market, the circumstances, production capacity and other factors involved, a realistic set of organizational goals has to be defined. Not only this, the leaders and managers involved have to plan how to achieve these business goals. Thus, different managers from various departments will need to be involved in the planning process to frame a thorough strategy. Thus, a holistic and realistic perspective will give way to a good strategy. 

Employee Objectives

The human resource aspect – the employees, their skills & productivity, efficiency is pivotal to the outcome of the objectives. Thus they need to be factored in, with the objectives considered. There will need to be competent managers who will manage the employees and their teams as well, building up morale, ensuring team-spirit and driving outcomes. Because ultimately, it is they who will be central to the outcome of the organizational goals. Their objectives are crucial. 

Evaluating Performance

Every manager involved in the execution and implementation of processes is a vital part of the whole. Hence their judgement of the team’s performance and output is crucial. Putting all these together can help to gain an overview about how the whole set of objectives is faring. Thus the organization’s leaders can decide whether a course-correction or a change in strategy is required. Performance evaluation is crucial at regular intervals, so that the process of driving the objectives can be fine-tuned for future goals as well. 

Tracking Performance & Progress

With many employees working in silos and driving their own objectives, it becomes imperative for someone at the top to keep a macro-level perspective and view. In order to achieve each objective, managers need to track the performance and progress of the teams, so that mid-course corrections can be done if so required. This tracking can help to get an idea if the deadlines can be met and if any changes in tactics or strategy is required or not. Accordingly, the effects of one objective on others can also be judged by incorporating the tracking of progress similar to how LegalWiz.in drives Payoneer discount offers with UTM-driven collaboration. Thus, the managers too can continuously have an idea of where the entire process is headed. This helps them to develop into organizational leaders in the future.

Feedback Performance & Appraisal

To complete the MBO process, it is not enough to define goals, employee objectives, track performance and evaluate it and make changes if any. It is absolutely necessary to drive home the lessons learnt from the entire exercise – managers, teams, individuals – everyone needs to be given feedback about their performance. Thus they can see what needed to be done right, or what they did correctly. Other teams can take inspiration and learn from this, generating a learning culture in the organization. Proper appraisal can help evolve a feedback and communication culture in the organization, thereby benefitting all teams & leaders in the long run. 

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