Management by objectives (MBO) connects organizational planning and control with employee participation. Instead of simply assigning goals to employees, managers and employees work together to define goals, plan actions, and monitor results.
Management by objectives (MBO) is a management philosophy, a planning and controlling technique, and an employee-involvement program. Its underlying idea is that people are more likely to accomplish plans when they are personally committed to them.
All flashcards
What is MBO?
Management by objectives is a philosophy and technique in which managers and employees collaborate to set goals, plan work, monitor results, and assess contributions.
What employee assumption underlies MBO?
MBO draws on Theory Y and the human resource model, which view employees as capable of self-direction and self-control.
What are the main stages of the MBO cycle?
Managers and employees agree on goals, develop action plans, monitor performance and recommend corrections, then review results and begin the cycle again.
Why does participation matter when goals are set?
Participation can make goals more realistic and acceptable, increasing employees’ commitment to pursuing them.
What does feedback help employees do?
Feedback helps employees understand progress and decide whether to maintain or redirect effort, including whether they are investing sufficient effort.
Quiz questions
What is management by objectives (MBO)?Answer: A collaborative approach to defining goals, plans, and controls with employees.
Which assumption about employees supports MBO as a management philosophy?Answer: Employees can exercise self-direction and self-control.
How can employee participation in MBO goal setting support performance?Answer: It can help create realistic, acceptable goals that employees are committed to pursuing.
An employee sees that progress is deviating from an agreed objective and recommends a change. Which MBO activity is this?Answer: Monitoring performance and recommending corrective action.
What role does feedback play in MBO?Answer: It helps employees judge whether to sustain or redirect effort and whether their effort is sufficient.
Based on Principles of Management by David S. Bright, Anastasia H. Cortes, Eva Hartmann, K. Praveen Parboteeah, Jon L. Pierce, Monique Reece, Amit Shah, Siri Terjesen, Joseph Weiss, Margaret A. White, Donald G. Gardner, Jason Lambert et al. (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.