Joyce Anne S.

Ramirez BPED III-A

MCPED Elective 1 Mr. Arnel Plantado

Explain management by objectives. Cite an example that explains the objectives.

Management by Objectives (MBO) is a management approach that focuses on setting clear

and specific objectives for individuals and teams within an organization. The key idea behind MBO
is to align the goals and objectives of employees with the overall goals and objectives of the
organization. In MBO, managers and employees work together to set goals that are specific,
measurable, achievable, realistic, and time-bound (SMART goals). These goals are then used as
a basis for performance evaluation and decision-making. The process of MBO typically involves
the following steps:
1. Goal Setting: Managers and employees collaborate to set specific and measurable goals that
are aligned with the organization's objectives.
2. Action Planning: Once the goals are set, action plans are developed to outline the steps
needed to achieve those goals.
3. Performance Evaluation: Regular performance evaluations are conducted to assess the
progress made towards the goals. Feedback and guidance are provided to help employees
improve their performance.
4. Review and Reward: At the end of the evaluation period, results are reviewed, and rewards or
incentives are given to employees based on their performance.

EXAMPLE
Imagine a software development company called Tech Solutions. The company's overall objective
is to increase customer satisfaction and deliver high-quality software products within specified
timelines. To achieve this objective, the management team sets specific goals for their software
development team using the MBO approach. One of the objectives could be to reduce the average
time taken to resolve customer issues. The software development team then creates an action
plan that includes strategies such as improving communication channels with customers,
implementing a more efficient bug tracking system, and enhancing the skills of team members
through training. Throughout the quarter, the team regularly monitors their progress, tracks the
average issue resolution time, and makes necessary adjustments to their action plan. They
receive feedback from their manager and collaborate to overcome challenges and improve their
performance. At the end of the quarter, the team evaluates their results and finds that they have
successfully achieved a 25% reduction in average issue resolution time.