What is management by objectives? Management process using MBO

Management by goals MBO is one of the most complex forms of management, but if you know how to use it correctly, it will bring good results in business management. The article below Viindoo will introduce you to basic information about MBO as well as how to effectively implement goal management with Viindoo software.

What is target management?

Management by Objectives (MBO - Management By Objectives) is a management method in which managers and employees jointly set, record and implement goals over a specific period of time.

Born nearly 70 years ago, MBO has a relatively long history of development and many large companies around the world have applied it. At Hewlett-Packard (HP), MBO is considered an important policy, contributing greatly to the company's success. Many other companies have also appreciated the role of MBO including Xerox, DuPont, Intel...

Objectives can be given in all areas of business, such as finance, marketing, sales, research and development, human resources, infrastructure and information technology

Management process according to MBO goals

Goal Setting

The company's leadership needs to set common goals related to vision, strategy, long-term and short-term development plans. After determining the general goal, businesses need to break down the goals into departments and divisions.

Whether or not the overall goals of the business are achieved depends on each individual in the company. Therefore, company leaders need to have detailed control and business management skills for timely coordination.

Develop an action plan

An action plan simply means specific activities to achieve a goal. Each individual and unit needs to master the principles and procedures for implementing goals, and at the same time comply and seriously implement the set goals.

Continuously measure progress and evaluate performance

Controlling the operating process is a way for individuals and organizations to reassess the process of achieving goals. From there, there is a reasonable adjustment and replacement plan when necessary

Provide feedback

After completing the work process. Each individual and business needs to compare results with set goals. If your results are different from your goals, you need to review your implementation process to draw lessons and experiences for the next time. You should also refer to more tips on conquering goals so that you can easily conquer the goals you have set.

Record results and reward

For individuals and groups that exceed set targets. Businesses should have a reward policy to motivate all employees in the company.

Advantages and disadvantages of MBO management method

Advantage

• Accurately evaluate the capacity and working efficiency of each individual and department.
• Motivates employees to understand more about their work. From there, there is a direction to solve and perform work more effectively.
• MBO helps businesses manage goals effectively: Each individual is always clearly aware of their roles and responsibilities. This is a linking factor that helps businesses create great value in managing common goals.
• Create a more open and developed working environment: Each individual always strives to achieve the business's goals. From there, it helps employees develop their abilities and self-awareness at work.
  

Defect

• Employees may feel stressed and overloaded with work pressure.
• MBO depends only on short-term plans because the quantitative nature is not suitable for long-term goals.
• Whether or not the MBO system meets the requirements depends greatly on the inspection of management levels.
• It is necessary to periodically check and monitor to take timely adjustment and replacement measures when necessary.
• It is difficult to maintain the connection between each department and department because everyone is oriented toward their own goals.
• The MBO model causes your business to operate disjointedly because there is no connection.
• Applying overall management requires businesses to meet and plan many times, consuming a lot of effort.
  

How to perform effective management using MBO goals with Viindoo software

Viindoo OKR is OKR software that supports setting goals and key results (OKR), widely shared with all employees, building a clear action roadmap, closely following actual progress. Realize goals and promote human resources potential, enhance internal commitment.

Outstanding features of Viindoo OKR software:

Support the development of appropriate strategic goals

• OKRs are deployed from the company level to the department and individual in two directions: top-down and bottom-up.
• The goals of the company - departments - individuals are given in a unified and closely linked manner. The company's overall goals are divided into each key result, completing goals at smaller levels.
• Allows setting the level of difference between key results according to each goal, supporting personnel to set priorities according to each specific goal.
• Goal management tool helps set up and manage OKRs in a multi-company environment.
  

Spread the goal to the entire business

• All employees can view the OKR software and feel the connection between business goals and departmental and individual goals through the intuitive tree diagram interface. Thanks to that, personnel know what they are doing, for what goals of the department and the whole business.
  

Stick to goals, improve work efficiency

• Closely linked with Human Resources Management Software and Working Time Management Software: supports creating jobs and tasks associated with OKRs, recording timekeeping for each task associated with OKRs, helping managers follow Track progress of goals and key results in Viindoo OKR software.
  

Update key results assessment scores

• Proactively update key results scores on a scale from 0.0 to 1.0. (0 points means not achieving the goal, 0.6-0.7 means going in the right direction, and 1 point means completing the goal).
• Automatically update progress on goal completion based on key results, so managers will more closely follow the progress of OKR completion.
• Easily filter and group with many criteria, quickly search for goals, key results, work progress of related employees/departments by month, quarter, status, weight...
  

Viindoo has helped you understand management by goals​ through the useful knowledge shared in the article above. Hopefully you will apply this information effectively to your business organization!