Management by Objectives

Despite its problem, the MBO system, which is well aligned with the statement "if you want high performance from individual contributors, you must hire the best people, work with them to set challenging performance objectives, give them the best possible support, and hold them accountable for results," (Schermerhorn et al 2004, p. 197) can still provide many benefits to organisations today. It may need to be slightly modified to fit in with a particular organisation, but the basic principles still hold true. By giving each employee clear goals, organisations can ensure each individual effort is sufficiently focussed on the tasks that are determined to be of the greatest importance in regards to achieving business objectives. Although it does seem to be focussed mainly on individual contributions, which may not fit in with the current climate aimed at team-building and effort, it can be modified to allow for an even more collaborative approach. …