Management by objectives

Motivating your employees to work is not an easy task. It is good to get to know different motivation techniques in order to pick the one that will work best for your company. One of such techniques is ‘management by objectives’.

This model assumes that the basis for success is a clearly defined objective and the right way to achieve this objective. Enterprises based on this mode focus on achieving specific, previously defined goals. This, however, is not easy. Setting a goal is just the beginning. Already at the outset, it is good to remember that the objective should match the capabilities of the enterprise, as only then the entire group will be able to achieve it. Then, planning is to be done, followed by implementation.

The process of formulating the objective is very important and you need to remember about several key things. One is to follow the SMART rule: Specific, Measurable, Achievable, Rational, and Trackable. This means that the goals should not be general – we need to be specific, so that these goals become a basis for taking the relevant actions. Secondly, the goals must be measurable, so that it is possible to define to what extent a particular task has actually been carried out. Thirdly, the goal must be achievable and within the reach of the individual that is responsible for it. The goals must be reasonable, rational, and their achievement must contribute to the company’s success. It is also important that the task is trackable and it is possible to check how much work is still needed to complete it in 100%.

The idea of management by objectives allows for involving lower-tier employees in managing the company, which positively affects their work. However, this must be based on lots of trust in the employees and the management being positive that the personnel have the necessary skills. This model allows for actively integrating them into the operations of the enterprise, relieving the managers and directors of their duties a little. However, it is important that the objectives are set in the presence of the employees, so that they can decide if they are able to complete a given task. The task itself must be understandable for the employee, so that he is aware of what is expected from him or her. In turn, every task of an individual must serve the purpose of achieving the overriding objective, and the employee needs to know how important his or her role in the entire project is.

In the course of carrying out the task, each individual should be free to act, but with on-going control of the results. This will provide the management with continuous control over the situation, while the employee, aware of the upcoming evaluation, will carry out his or her tasks more diligently. This also allows for avoiding or minimising the potential errors of the employees and making on-going corrections.

The Motiveo tool will come in handy in working on your model of motivation by objectives, as it helps to clearly specify the key factors for the success of a given sales strategy. This system will allow the users – both the managers and the employees – to create an optimum motivation model that will be adapted to the industry specifics, as well as to track the progress of the implemented actions.

Management by objectives, like any other motivation technique, has its pros and cons. Not every company will be able to effectively implement this model. It requires lots of time and efficient and consistent managers. The benefits include, primarily, betters results of the enterprise and improved satisfaction of the employees, who feel more appreciated. In turn, cooperation improves communication, which translates to a better team performance.