- The MBO provides an approach for clarifying the activities and responsibilities of the leadership structure and each employee;
However, the MBO is challenged when it is abusively reduced to numerical quotas, dashboards and short-term objectives.
Management by Objectives (MBO) is one of the methods most used by organizations to operationalize the strategic objectives in the organizational structure, that is, to transform vision into action.
The MBO provides an approach to clarify the activities and responsibilities of the leadership structure and each employee, facilitating the definition and agreement of a performance evaluation model within the organization’s objectives. However, despite its recognition, the MBO is challenged when it is abusively reduced to numerical quotas, dashboards and short-term objectives (usually financial or accounting).
This reductionist vision of MBO creates an organizational culture in which employees seek only to achieve immediate objectives, not promoting consistency of results, collaboration and organizational synergy and continuous improvement of processes.
Such an approach is more akin to setting targets, not objectives, which is precisely the opposite of the philosophy underlying MBO implementation.
In essence, the MBO is a methodology for planning, executing and controlling long-term objectives that contributes to the continuous improvement of organizations.
This improvement is achieved through: two-way communication between managers and employees; consequent optimization of processes; and action on deviations and consolidation of good practices. Thus, an objective becomes a safeguard mechanism, guaranteeing an involvement and commitment in the pursuit of results, which are fruitful and aligned with the strategy and defined directions.