What Is Management by Objectives?

It is a management method to achieve the business objectives of the enterprise through the self-management of employees by means of setting and decomposing goals, checking the implementation and completion of goals, rewards and punishments.

Classic management theory defines MBO as: Management by objectives is goal-oriented, people-centered, and results-based, and organizations and individuals take

The guiding ideology of goal management is based on the "Y theory" in management psychology, that is, people can be responsible for themselves under the condition of clear goals. Its theoretical basis is the goal theory in psychology and organizational behavior. That is, any organization setting goals systematically and emphasizing the evaluation of target results can improve the organization's work efficiency and employee satisfaction. ^[2]

The purpose of goal management is to motivate the majority of employees through goal incentives, thereby ensuring that the overall goal is achieved. Its core is to clarify and value the evaluation of results, and to promote the self-improvement of personal abilities. Its characteristics are to use goals as a guide for various management activities, and to evaluate the contribution of achievements based on the achievement of goals. ^[2]

The central idea of target management is to concretely expand the organizational goals to become the behavior direction and incentive means of each member, each level, department, etc. of the organization, and at the same time make it become the work of evaluating each member, each level, department, etc. of the organization Performance standards that enable organizations to operate effectively. ^[2]

The basic content of goal management is to mobilize all employees to participate in setting goals and ensure that the goals are achieved. That is, the upper and lower levels of the organization agree on the common goals of the organization and develop them into each department, level, and member of the organization. It is closely related to the responsibilities and achievements of each unit, department, level and member in the organization. During the implementation of the goal, the scope of responsibility of the superior and subordinate should be determined according to the goal, the authority of the superior is delegated, and the subordinate realizes self-management. In the process of results evaluation, these goals are strictly used as evaluation and reward standards, and a combination of self-evaluation and superior evaluation is implemented. In the end, the organization will form a comprehensive, full-process, multi-level goal management system, improve the leadership ability of the superiors, stimulate the enthusiasm of the subordinates, and ensure that the goals are achieved. ^[2]

Target management is most widely used in the field of enterprise management.

The specific forms of target management are various, but the basic content is the same. The so-called objective management is a procedure or process that allows the superiors and subordinates in the organization to negotiate together, determine the overall goals of the organization within a certain period according to the mission of the organization, and thus determine the responsibilities and sub-objectives of the superiors and subordinates, and set these Target as an organization,

The specific method of goal management is divided into three stages: the first stage is the setting of goals; the second stage is the management of achieving the goal process; the third stage is the results obtained by measurement and evaluation. ^[2]

1. Goal setting

This is the most important phase of management by objectives. The first phase can be broken down into four steps:

Predetermined goals by senior management. This is a temporary and changeable goal plan. It can be proposed by the superior and discussed with the subordinate; it can also be proposed by the subordinate and approved by the superior. Either way, the decision must be discussed together. Second, the leader must estimate the opportunities and challenges brought about by the objective environment according to the mission and long-term strategy of the enterprise, and have a clear understanding of the advantages and disadvantages of the enterprise. Have an idea of what the organization should and can accomplish. ^[2]

Re-examine the organizational structure and division of responsibilities. Management by objectives requires that each sub-objective has a defined body of responsibility. Therefore, after the target is set, the existing organizational structure needs to be re-examined, adjusted according to the new target decomposition requirements, and the target responsibility and coordination relationship should be clarified. ^[2]

Establish lower-level goals. First, the subordinates clarify the organization's plans and goals, and then agree on the subordinate goals. During discussions, superiors should respect their subordinates, wait for others, listen patiently to their opinions, and help them develop consistency and supportive goals. Targets should be quantified in a specific way to facilitate the assessment; prioritization should be prioritized so as not to lose sight of each other; it must be challenging and possible to achieve. The sub-objectives of each employee and department should be coordinated with other sub-objectives to support the achievement of the unit and organizational goals. ^[2]

The superiors and subordinates reached an agreement on the conditions required to achieve the goals and the rewards and punishments after achieving the goals. After the sub-objectives are formulated, the corresponding subordinates shall be given the power to allocate resources to achieve the unity of power, responsibility and profit. A written agreement is written by the subordinates, and a target record card is prepared. After the entire organization summarizes all the data, the target map is drawn. ^[2]

2. Management of the achievement process

Goal management emphasizes results, and emphasizes autonomy, autonomy, and consciousness. It does not mean that the leader can leave it alone. On the contrary, due to the formation of the target system, a mistake will affect the overall situation. Therefore, the management of leaders in the implementation of goals is indispensable. First of all, regular inspections should be conducted naturally using the opportunities of frequent contact between the two parties and information feedback channels; secondly, the progress should be reported to the subordinates to facilitate mutual coordination; secondly, the subordinates should be helped to solve difficult problems in the work. When affecting the achievement of the organization's goals, the original goals can also be modified through certain procedures. ^[2]

3 Summary and evaluation

After reaching the predetermined deadline, the subordinates will first conduct self-assessment and submit a written report; then the subordinates will evaluate the achievement of the goals together and decide the rewards and punishments; meanwhile, discuss the next stage goals and start a new cycle. If the goal is not achieved, the reasons should be analyzed and lessons learned, and mutual blame should be avoided to maintain an atmosphere of mutual trust. ^[2]