A perfect corporate strategy is first built by setting goals for the business, and then using appropriate management methods to implement that strategy step by step. Currently, the two most popular management methods today are MBO and MBP. So what is MBO and MBP? Let's find out with Giaiphapdonggoi.net!
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1. MBO
1.1. What is Management by Objectives (MBO)?
What is Management by Objectives (MBO)?
MBO stands for Management by Objectives and is a strategic approach to improving the performance of an organization. It is a process by which organizational goals are defined and communicated by management to the members of the organization in order to achieve each goal.
An important step in the MBO approach is to track and evaluate each employee's performance and progress against established goals. Ideally, if employees themselves are involved in setting goals and determining their actions, they are more likely to fulfill their obligations.
1.2. Benefits of management by goals
Benefits of management by goals
Management by goals helps employees appreciate their roles and responsibilities at work.
Key Results Areas (KRAs) are specifically planned for each employee, depending on their interests, education and expertise.
The MBO method often results in better communication and teamwork.
It gives employees a clear understanding of what to expect. The supervisor sets goals for every team member, and every employee is assigned a unique task list.
Each employee is assigned specific goals. As a result, each employee feels attached to the organization and eventually develops a sense of loyalty to the organization.
Managers help ensure that subordinates' goals are related to the goals of the organization.
1.3. Limitations of management by goals
Limitations of management by goals
Management by objectives often ignores the existing characteristics and working conditions of the organization.
More emphasis on goals and targets. Managers always put pressure on employees to accomplish their goals, but forget about using MBO for leadership engagement, willingness to contribute and development.
Managers sometimes overemphasize goal setting, over performance issues, as a success factor.
The MBO approach does not emphasize the importance of the context in which the goals are set. Context includes everything from resource availability and efficiency to relative engagement from leadership and stakeholders.
Finally, many managers tend to view management by objectives as a holistic system that can handle all management issues once installed. Overdependence can pose problems for the MBO system that it is not prepared to solve, and that defeats any possible positive impact on the problems. problem it has to solve.
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2. MBP
2.1. What is MBP?
What is MBP?
MBP stands for Management by Process - management model by process: We define the steps to do a job, then build a process for that job, develop a process control plan, a plan. test plan, measure MBP according to process control plan and test test plan.
2.2. Benefits of process management
Benefits of process management
Continually control the workflow and activities in the business.
Detecting and quickly correcting errors due to rapid transmission of information between departments, the department head is not only responsible for the work of his department but also has to be jointly responsible for the work of the department. department. part behind you. Management by function, the head of any department knows the work of that department.
Create conditions for everyone in the business to participate in quality improvement.
For example, if purchasing and manufacturing representatives are involved right from the design stage, it will ensure that materials are purchased in accordance with design and production requirements.
Work processes create favorable conditions for the application of information technology in corporate governance.
Develop business documents in a systematic and consistent manner.
Detailed control of work performance through building process flowcharts, defining control points,...
2.3. Limitations when managing by process
Limitations when managing by process
Although the horizontal organization principle of process management has many of the above advantages, its implementation is not easy. One of the most vulnerable points of this model is the crude exchange
