Management Analysis : Management Process

906 WordsSep 23, 20144 Pages
Management by Objectives, MBO, is a management process where managers and employees decide together what goals the employee should work to achieve. The goals set for the employee are agreed upon by both the employee and the manager. The employee is evaluated based on these goals and may be given a raise or a promotion if they have achieved the set goals within some set period of time. This management process was first introduced by Peter Drucker in his 1954 book “The Practice of Management” with the intention to provide a way to empower employees. (Drucker) MBO a management process consisting of five steps. The initial step in the process is for the objectives of the organization to be determined by all of management. This allows all managers to be involved in planning. In the next step the managers will sit down and talk with their team members. The manager and employee will both have a set of goals they feel will help the employee be more effective at his or her job. Both sides discuss what “specific goals, measures of achievement, and time frames” (Thomsom 2) that the employee will complete the goals. The goals should be “specific, measurable, achievable, realistic and time bound.” (Drucker) The next step is for management to monitor the progress of the employee and then evaluate his or her performance. In the last step, it decided whether or not the employees should be granted a raise or promotion depending on what goals they were able to accomplish. MBO is important
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