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What is Management By Objectives?

 , December 04, 2015
Management By Objectives, or MBO, is a management technique centered around participative goal setting. Goals are agreed between each individual in a team and the team manager. Each individual's performance is latter evaluated using the same goals.
Where Management By Objectives is adopted by an organization there is an effort to align the goals from executive management to middle management and from middle management to teams. As such, it is considered a tool of strategy implementation. It is also considered a communication and performance management tool that sets expectations in a participative and clear fashion.
Many organizations require that goals be SMART or specific, measurable, achievable, relevant and time-bound.
Overview: Management By Objectives
FunctionManagement strategy
Performance management
Goal setting
ValueStrategy implementation
Employee engagement
Common PitfallsWhere goals are required to be SMART, a number of problems are common such as setting target dates for goals that aren't maintained in MBO documentation when prioritizes change and dependencies fail.

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