Explain the concept of management by objectives (MBO). How can businesses use MBO to align employee goals with organizational objectives?
Explain the concept of management by objectives (MBO). How can businesses use MBO to align employee goals with organizational objectives?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Explain the concept of management by objectives (MBO). How can businesses use MBO to align employee goals with organizational objectives?
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Step 1: Introduction to Management By Objectives
Management by Objectives (MBO) is a strategic management approach that aligns organizational objectives with the individual goals of employees. It is a process in which managers and employees work together to set specific, measurable, achievable, relevant, and time-bound (SMART) goals for the employee. These goals are then used to measure the employee's performance and provide feedback.
Key elements of MBO are:
- Goal Setting
- Participation and Collaboration
- Cascading Objectives
- Performance Monitoring
- Performance Evaluation and Rewards
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