Does Management By Objectives motivate employees? If so, how?.

Although management literature is filled with panaceas, new ideas and new, crucial methods, nothing is more important for a company than to have an effective and efficient management process, because without an effective and efficient management process it is not possible to effectively put the resources to good, profitable usage.

For this reason there was a need for Management By Objectives (MBO) to come about in the 1950s.

Management by objectives is a "key motivation technique- in which both managers and employees cooperate in order to set a company's goals within time-specific borders. An important question is how hard the objectives should be to meet. If they are too easy, they will not challenge the worker. If they are too hard, the employee may not take them seriously. Many management experts feel they should be about 50 percent attainable. .

Notably, the fact that humans are irrational beings should imply that methods solely applicable to the rationale will ultimately fail in the long run. What is needed is that the management process is based on a set of agreed-upon rules, values and morals in addition to MBO.( Peter Drucker).

Management provides specific performance goals for each employee and its position within the organization.

MBO is closely identified with Peter Drucker who popularized it in his 1954 book The Practice of Management. The worker participates with management in setting his or her own objectives, which need to be specific and measurable within a set time frame. .


For a salesperson.

Increase sales by 20 percent a month within the next year.

For a production supervisor.

Have no more than three lost-time accidents on my production line over the next six months.

For the leader of a word-processing unit.

Meet all the department's needs for word processing with no complaints to my supervisor in the next month.