Circumstances for Management By Objectives?

Management by Objectives, SMART
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Indra Tjahja
CxO / Board, Indonesia

Circumstances for Management By Objectives?

MBO is applicable in the right situation / circumstances only: in small and middle business scale. My experience is not really good when I was CEO for a big company with over 3,000 workers with heterogene skill levels.

Student (University), Hong Kong

Follow Up Question

Can you explain more what difficulties you faced? This would be interesting to know the reality, and maybe we can solve it through discussion?

  Muhammad Al-Waeli
Analyst, Iraq

MBO and the Size of Organization

MBO is an important method, even if we would focus only one of its characteristics which is involving everybody in the process of goal setting and not keeping it the privilege of managers only.
MBO is at its best when you try to convey strategic goals to subordinates and ask them to participate in refining strategic goals into functional goals.
However I would say that MBO works best in small organizations. When we try to implement it in larger ones, the process of doing it would take a lot of overhead time, effort, and cost and that overhead might exceed the benefits of MBO.

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