Objective Setting and MBO-SMART Objectives
Defining the performance objectives can be very useful as it defines the performance expectations. Objectives which are written down and are verifiable can be far more useful if they are SMART in nature which means Specific, Measurable, Achievable, Realistic and Time Bound. Many organizations set goals and objectives through a formal process known as Management by Objectives (MBO) which is an organized and a systematic approach of defining organizational goals and realizing them within the available resources.
The main aim of this approach is to improve organizational performance by aligning the organizational goals with the individual objectives at all levels and attaining those goals within a prescribed time frame. The system involves continuous monitoring and feedback for improving the quality of outcome.
The chief proponent of MBO system was Peter F Drucker in 1954 in his book entitled The Practice of management. GE was the first organization to adopt the MBO method for defining goals.
The major focus of this approach is on inviting participation from all the managers in the goal setting process and strategic planning and implementing a range of performance systems which help an organization to remain on the right path.
On the whole, it may be regarded that objective setting process is an important part of performance management process as it defines and manages expectations by establishing an understanding on the part of the role holder about what has to be achieved and at the same time acts as a point of reference during the period of performance review.
Objectives can be broadly classified under the following heads:
Prerequisites for a good objective
- Development & Implementation
- Competency Management Approach
- Talent Management Practices
- Performance Assessments Techniques
- Role of Managers at Different Levels
Authorship/Referencing - About the Author(s)
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