The Benefits of Management by Objectives (MBO)
Pendahuluan: Traditional goal-setting can often lead to a loss of clarity and effectiveness as goals trickle down from the top of the organization. However, there is an alternative approach called Management by Objectives (MBO) that offers several benefits. This article will explore the advantages of using MBO in organizations. Bagian: ① Bagian pertama: The Downside of Traditional Goal-Setting - Goals can lose clarity as they move down the organizational hierarchy. - Example of the CarrierCarlyle Compressor Facility in Stone Mountain, Georgia, where employees and managers focus on goals to drive performance. - The facility has seen significant improvements in customer reject rates and workplace injuries through goal-oriented planning. ② Bagian kedua: Understanding Management by Objectives (MBO) - MBO is a process of setting mutually agreed-upon goals and using them to evaluate employee performance. - Companies like Adobe, GE, and Microsoft have replaced traditional performance ratings with MBO programs. - Adobe's MBO program, known as Check In, involves regular goal check-ins and rewards based on goal attainment. ③ Bagian ketiga: The Benefits of MBO - MBO programs have four key elements: goal specificity, participative decision making, explicit time periods, and performance feedback. - MBO motivates employees by involving them in goal setting and focusing on their progress. - Studies have shown that MBO can increase employee performance and organizational productivity. Kesimpulan: Management by Objectives (MBO) offers a more effective and motivating approach to goal-setting compared to traditional methods. By involving employees in goal setting and providing regular feedback, MBO can drive performance and improve organizational productivity.