Management by objectives (German: Leads by goal agreement) is a method from the management economics to the guidance of coworkers of an enterprise, who 1955 were invented by Peter F. printers.

A goal

A goal of the procedure is it to convert the strategic goals of the total enterprise as goals for each organizational unit are formulated and also for the coworkers. These goals should be "SMART":

• S - Specifically (to the respective department)
• M - Measurably (clear defaults)
• A Allokierbar (ascertainable;
• R - Realistically (convertible)
• T - Scheduled (clear time limit)

Of the sum of the single goals the company targets are to then consist. The coworkers are to align their daily operational work on their goals and work in such a way in the sense of the strategy of the total house. If the superiors judge the achievement of their coworkers, they examine, to what extent the coworkers achieved their agreed upon goals. This theory was developed considerably by the Austrian-American management theoretician Peter F. printer, which developed the MBO beginning in the 1960er and 1970er years. Fredmund Malik resumed this concept.

Function

• Management process individualize
• Coworkers motivate
• during the common employment lead
• in order to reach company targets

Proceed

Normally coworkers lead and superiors a goal agreement discussion, in which the goals and the goal objectives are agreed upon. If with the Zielerreichung a remuneration component (thus e.g. a bonus payment) is connected, becomes the sanctions of the Zielerreichung with agreed upon. For the half of the yearly (when annual measurement) a first feedback is usually given, how the coworker lies with the reaching of his goals "in running"; beyond that the possibilities of the IT offer today the opportunity that coworkers themselves (for instance within the sales range or in production with quality goals) examine their goal reaching degree constantly. After the end of the agreed upon running time of the goals coworkers and high-level personnel meet again, discuss the degree of the Zielerreichung and usually also the goals for the coming period.

Conditions

A condition for the successful conversion of goal agreements is a hierarchical target system without conflicting aims, in other words: the sum of the single goals of all coworkers may not contradict the strategic goals of the total enterprise. In addition one needs a good information and communication system, in order to be able to determine measurable, undisputed goals. Goal values must be selected in such a way and/or agreed upon better that they are attainable with appropriate effort for the coworkers. In addition a such guiding system presupposes that adequate a scope of action and decision are granted to the coworkers. Since it concerns when leading by goal agreement an interactive process, regularly a comparison of nominal and actual values must take place for performance evaluation accomplished and afterwards an adjustment of the work execution.

Evaluation

Positive effects in relation to other guidance concepts is the higher reality proximity due to the participation of implementing levels. Further is higher, by the participation of the coworkers at decision making, the acceptance of the goals and the achievement motivation than with authoritarian default.

However the system causes a high organizational expenditure. Further problems can be the Zurechenbarkeit of the goal reaching degrees with view of independence and/or interdependence of individual performances, the neglect of coworker orientation by one-sided concentration on achievement goals, department egoisms as well as conflicting aims.

Literature

• Manual of goal agreement discussions, Poeschel publishing house 2000, ISBN 3-7910-1718-7
• Svenja dyke, the legal evaluation of goal agreements in the employer-employee relationship - emphasis individual industrial law, thesis 2004, Logos publishing house Berlin, ISBN 3-8325-0590-3
• Svenja dyke, "goal agreements", in: Ulrich price, innovative conditions of work, Cologne 2005, P. 581 FF.
• Gunther wolf: Variable remuneration - ingenious simply enterprises steer, high-level personnel relieve and coworkers inspire. Hamburg. Publishing house 2005, ISBN 3931832678.

See also

• Management by exception
• Management by delegation
• Management by results
• Hoshin management

Articles in category "Management by objectives"

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Related Websites

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