Research more about and discuss what is Management By Objectives (MBO).

There are various strategic management models that can help companies to
better define their primary objectives and achieve them. One such model called
management by objectives (MBO) that are common in a variety of industries. The term
'Management by Objectives' was first termed by management guru Peter Drucker in his
1954 book, The Practice of Management. This is defined as the strategic business
model designed to improve the performance of an organization by having a clearly
defined objective that is agreed upon by both the management and the employees.
Through MBO managers can systematically update and delegate tasks to their
employees by setting functions for each employee and also monitoring their work. Most
industries practiced this as an employee appraisal method for promotion and other
monetary and non-monetary bonuses.
On the other hand, MBO has a process cycle that is followed by managers. First,
set organizational objectives. MBO follows the mnemonic S.M.A.R.T while setting its
objectives. S for Specific, MBO target a specific goal for improvement. M for
measurable means to quantify an indicator of progress such as you must have
a quantitative way of measuring that you have effectively achieved the goal. A for
assignable, the managers specify who will do the particular objectives. R for realistic
means that the objective must be achievable. T for time-bound, specify when objectives
can be achieved. Second, set and align these objectives with the employees. Third,
allow an employee to plan their objectives to achieve their assigned tasks. Fourth,
monitor your employee performance. And lastly, evaluate and rewards employees.

MBO has five advantages. First, it is efficient management because if employees

are more clearly about their goals this will help them plan and have a very clear
structure to follow that will help them to be more productive at their jobs, and their
efficiency increases. Second, effective planning. Since the employee knows the goals,
they can develop a systematic approach and plan to achieve them. In this way, the
planning process becomes relatively straightforward. Third, transparency. Good
communication between the higher and lower level will bring opportunity and clarity in
ambiguous roles by defining clear objectives through MBO that gives an edge to
understanding it and following transparency in the process. Fourth, reinforces
commitment. Since MBO reinforces the involvement of every member by allowing them
to plan and achieve their company goals and since everyone is assigned goals to reach
the target, it gives employees a sense of commitment. Fifth is goal-setting. In MBO
goal-setting is done by mutual participation of the management and employees. So that
the goal is fulfilled.