Managing by Objectives (MBO) is focused on the setting of measurable goals and objectives and the tracking of their achievement over time. Proper objective setting should adhere to these key principles:
- Goals and objectives should always be specific and capable of being measured or observed.
- While realistic and attainable, they should provide a challenge and require a measure of “stretch effort” to achieve.
- They should always relate to the goals and objectives of the organization as well as the department/function in which the employee is working.
- All goals and objectives should have a timeframe for completion.
This tool offers an alternative method for evaluating employee performance.