What is Management by Objectives (DPO)?

The management by objectives It refers to the technique that allows the important objectives of the company to be passed, where all those who make up the company participate at a strategic and operational level to perform various specific objectives.

It can also be said that management by objectives consists of classify the strategic objectives of the company, from the hierarchical level, which indicates to each of the levels the specific objectives and in this way they can meet the general objectives.

Once the objectives have been distributed, each of the members of the company executes an action plan in conjunction with the general objectives. These members, in the company of their superiors, will define their responsibilities and carry out the steps necessary to manage your unit this being his contribution to the company and will be evaluated later.

Principles of Management by Objectives

Management by objectives comprises a series of principles such as the following:

• Those who are at a higher level together with their collaborators, are in the duty to define by consensus, what will be the specific objectives to be achieved, if possible with a date setting.
• Employees who are also involved and committed must be motivated to do their jobs efficiently.
• It is necessary to constantly monitor the progress and the goals achieved, to verify if the established objectives are being met.
• As the objectives are met, this will be well rewarded.
• An efficient result will be recognized if it has met the goal set.

Phases of Management by Objectives

Management by objectives is mostly applied in a limited way, this is because it is the means that helps managers develop professionally. Despite this, management by objectives has broader approaches, therefore, it needs to be applied throughout the company in a comprehensive manner.

Regardless of how management by objectives is applied in the company, there are general modalities such as the following:

1. Definition

Both the manager and subordinates must determine results on specific dates.

2. Execution

When workers are motivated, they tend to be more committed to goals.

3. Control

The results are measured through the established objectives.

Reasons for implementing Management by Objectives

To implement management by objectives there are a wide number of reasons such as the following:

• Apply different types of objectives with or without a variety of remuneration and globally, departmentally or individually.
• Handle the procedure in a short time and easily.
• Indicates various levels of compliance.
• Modify the goal setting and review process in a digital and simplified way.
• It has the ability to manage different companies or departments.
• You can transform or eliminate errors in the procedure.

Functionalities that include Management by Objectives

Among its functions the following can be mentioned:

• The most important function of management by objectives is that it can achieve optimal planning and efficient performance of the management system.
• This system is in control of what to do, knows what the necessary resources are and avoids risks, all of this allows the work to be done efficiently.
• Having knowledge of the goal to be achieved makes it easier to apply authority, since it does not the intervention of superiors is lacking, thus allowing better relationships and more participation efficient.
• Management by objectives has the ability to direct efficiently, stimulates progress manager, so that their participation in the objectives and activities that they want is possible attain.

Elements of Management by Objectives

This system is essential for the development of the company, therefore, it is used to make the objective and allows efficient direction that leads towards the objectives that help to achieve the goals traced. For this, the following elements must be taken into account:

• goals: These must be clear, precise and must be communicated correctly.
• Participation: During the process of assigning objectives to workers, the company expects their best participation so that the goals are achieved.
• Evaluation: This is obtained from the performance and the results related to the pursuit of the objectives.

Advantages of Management by Objectives

The advantages of management by objectives can be classified in three ways:

Advantages for the company

• The participants are clear about the objectives that each one must carry out.
• The level of motivation rises and the work climate is harmonized.
• There is much more integration between the participants of the company.
• Encourage teamwork.

Advantages for management

• It includes all the workers of the company so that they participate responsibly in the development and achievement of the objectives.
• All work teams strive to achieve their performance at the same level.
• Communication is fluid and productive between the manager and his workers, since opinions related to the goals to be achieved are taken into account.
• The evaluation of the workers is objective due to the sequence of the objectives and not to the work carried out.

Advantages for employees

• By being informed of the results to be achieved, workers take responsibility for what they have to do.
• For the established objectives to be achieved, they have the freedom to choose how to work and give importance to how they want to achieve the objectives.
• Their work is objectively evaluated, as it is determined through the achievements obtained.
• By having a constant performance evaluation, you can know how professional development is progressing.

This management system is previously focused on achieving the objectives set, therefore, it is very important that all company personnel always keep informed of what the objectives are and in this way efficiently carry out the activities to achieve said objectives and in turn achieve the success of the projects of the business.