What is management by goals?

Also known simply as MBO, management by objectives is a strategy that focuses on setting specific goals and goals within the company settings. Theoretically, management and the company's employees agree to support these goals and cooperate to ensure the achievement of the company's goals. To some extent, this approach allows all parties to be involved in the decision -making process because it requires feedback from anyone involved in business.

There are several benefits for management according to the target model. One has to do with the motivation of employees. Since employees are actively involved in setting goals and often in the process of designing processes and procedures that shift the company to these goals, they tend to have a stronger feeling of investment in the overall process. This will make employees pay more attention to their productivity, which improves employees' performance at all levels. As a result, the company has much better chance to be successful and achievet of their goals.

Increased communication throughout the organization is also one of the advantages of management according to goals. Managers and employees regularly communicate to ensure that the operation of all departments and areas within the company operates at the maximum level. This open line of interaction helps minimize the potential for incorrect communication and thus supports the overall production efforts of business. This clear process of communication also helps to ensure that everyone clearly understands how well the business works to achieve its goals and what each party can do to help in this process.

Although there are advantages for management according to the approach of the objectives, there are also several potential disadvantages. Attention to the creation of objectives can overshadow the practical aspect of designing policies and procedures that allow these goals to achieve. At the same time, the strategy may suffer if all parties involved do not have a clear understanding of which ofGroats can be adequately brought in creating the company's goals. In fact, without this grounding, the set goals can be unattainable and lead to great frustration by both employees and administration.

There is also a risk of evaluating the performance of employees based on an ideal model, rather than the talents and abilities that the employee brings to effort. In other words, the employee is expected to live until an example that may or may not be realistic. If the management process focuses more on what an employee can do today and less on what an employee can happen tomorrow will probably be frustration by the employee and manager who increases the chances of failure.