Management system based on goals and results. Building a personnel motivation system using the concepts of BSC, MBO, KPI. Stages of the management by objectives process

The basic principle of the formation of vertical dependence can be formulated as follows: the order in which the organization’s goals are developed is inversely proportional to their hierarchy. If the hierarchical nature implies movement from lower levels of management to higher ones, then the order of developing goals, on the contrary, is from higher to lower. Thus, after the development of goals for the activities of top management (the entire organization), their formation begins for lower-level employees, then the next, etc.

Almost all well-known specialists in management by objectives agree with this. However, there are two seemingly opposing points of view regarding the degree to which middle-level managers participate in the development of their own goals. Some researchers are convinced that in order to motivate and stimulate management personnel must take an active part in this process, others, on the contrary, believe that the degree of such participation should be insignificant. However, there is no inconsistency in this: everything ultimately depends on the specific case (the specifics of the organization as a whole, the characteristics of the leaders).

System of motivation and stimulation of enterprise personnel

The management system by objectives also has many supporters because this method makes it possible to significantly increase the objectivity of motivation and stimulation of personnel, freeing this procedure from the influence of subjective factors. Of course, objectivity is a relative concept, especially in areas directly related to human activity. However, it is quite possible to talk about the external objectivity of certain assessments if we determine in advance what exactly acts as criteria. From the perspective of a management system by objectives, this is an assessment of personnel based not on the personal qualities of a particular performer, but on the results of his activities according to pre-established parameters and using quantitative methods that make it possible to clearly and accurately calculate the amount of material remuneration.

Moreover, the introduction of quantitative assessment methods and the establishment of direct interdependence with the system of motivation and incentives for personnel in themselves can bring practical benefits to the organization. Among the obvious advantages of such formalization are the following:

establishing general and clear rules of the game;
resolving some existing interpersonal conflicts and preventing the emergence of new ones;
increasing the efficiency of resource use;
streamlining personnel policy; setting up a system of motivation and stimulation of personnel to achieve better results;
motivation and stimulation of personnel for self-improvement.

Of course, the use of quantitative methods for assessing performance has certain disadvantages, the main one of which is the lack of “internal” objectivity. It can be initially argued that they will always not fully correspond to all organizational realities, since any quantitative assessment technique is only a model of the surrounding reality. However, being a model also has its advantages. Absolutization, which initially makes one or another method of motivating and stimulating personnel insufficiently objective, leads to the need to constantly return to its analysis and work on its improvement, taking into account new management experience. As a result, internal ambiguity gives the entire system of formal assessments a dynamic and self-improving status.

The system of relationship between the goals of the organization and the personal goals of personnel

It has been proven more than once that the better an employee understands the goals set for him and the more accurately the latter correspond to his internal aspirations, the more likely they are to be achieved. The practical implementation of this principle in the conditions of a particular organization is quite complex, and this is what, as a rule, is the main obstacle to the implementation of a management system by objectives. The most effective way to solve this problem is to gradually introduce at the enterprise a system of relationship between the goals of the enterprise and personnel. This process can be divided into two stages: first - conceptual implementation, which makes it possible to distinguish and correlate the interests of the organization and the employees working in it, then - building a subsystem of motivation and incentives for personnel based on the criterial and quantitative ratio of the goals of the enterprise and personnel.

At first glance, it may seem that the goal relationship module itself is secondary in nature compared to the other two (“vertical goal relationship system” and “personnel performance assessment system”), but this is not so. It can bring no less benefits. Its essence lies in the ability to assess in detail the strengths and weaknesses of an organization, its external contacts and strategic directions of development through the prism of human resources.

Stages of implementing a management system by objectives

In my opinion, it is inappropriate to implement all three modules at the same time. Carrying out this process step by step has many advantages. In particular, it will not only allow you to distribute costs over time, but also minimize losses in the event of unforeseen situations.

It seems to me that it makes no sense to recommend any specific procedure - it all depends on the specifics of a particular organization. But here we can give some general recommendations. So, in companies with high labor intensity of production, you should start with the introduction of the second module, and with a large number of management levels - with the first.

But the implementation of all three modules does not yet guarantee the organization’s transition to a management system by objectives. This is only the first stage, following which it is necessary to conduct a thorough analysis and determine two things. The first is whether the organization still needs management by objectives. Secondly, to what extent the needs for its further implementation are met with resources. It is possible that the effect obtained from the functioning of the primary modules is sufficient to motivate and stimulate staff, and subsequent work will not bring justified returns.

The essence of the second stage lies in the paired integration of the first - third and second - third modules (see figure). As a result, two new macrosystems that retain their independence will be obtained. The first of them (M1-M2) reflects the strategic aspirations of the organization and represents the technological component of achieving its goals. Within its framework, the system of vertical dependence of goals correlates with resource support for activities at each level of management. The second of these macrosystems (M2-MZ) acts in the organization as a controlled subsystem of motivation and stimulation. Therefore, performance assessment and personnel remuneration are becoming more targeted, which increases the possibilities for regulating production, information and organizational processes. At this stage, all primary modules are actually formatted. They become more rigid, structured, and the indicators and correlations that describe them are clearer and more specific.

Only then, after a thorough analysis and assessment of the feasibility and timing of further work on the implementation of a management system by objectives, does it come to the third stage. Its main feature is the need for a two-level approach. On the one hand, there is an integration of three primary modules, and on the other, the macrosystems M1-MZ and M2-MZ are united into a single whole. It is impossible to separate the two named processes. Despite the high resource costs, they must take place simultaneously. At the same time, to motivate and stimulate personnel, plans of action, use of resources, development, distribution of working time are developed, as well as a budget and reporting system are formed. With the end of the last stage, the system takes on a complete form, allowing the enterprise to achieve its goals with sufficient resources and a realistic forecast of market conditions.

A step-by-step approach to implementing a management system by objectives at enterprises and organizations has many advantages. Firstly, it makes it possible to rationalize the costs of restructuring the management system. Secondly, to obtain practical results even before the complete completion of work on the implementation of a management system by objectives. Thirdly, minimize financial and organizational risks. In Russian conditions, this is especially valuable, since it allows enterprises and organizations to gradually improve the system of motivation and incentives for personnel.

The most modern method of MBO is posted at the link. We also recommend that you look. In chapter "How to order the construction of a system of BSC and KPI indicators?" You can familiarize yourself with the procedure for ordering and performing this service. Check out our offers for cost optimization for this work in the section "Cost of developing a KPI indicator system".
If you fill out this form, we will prepare Commercial offer , taking into account the possibilities of such optimization.

Today, in many Western companies, along with official goals, or goals-tasks contained in plans, informal goals-guidelines are becoming increasingly widespread in management. They are formulated by employees with the help of their immediate supervisors, taking into account their individual capabilities and abilities. The achievement of precisely such goals is stimulated in the first place. In other words, official planning is supplemented by a system of individual goals and their personal stimulation, taking into account the specific job responsibilities and personal qualities of employees.

The management of these processes, from setting goals to assessing their implementation, is called management by objectives(UOC). With its help, staff ensures a deeper understanding of the goals of the organization or department, and, consequently, better performance of their duties. The UOC makes it possible to give people more authority, increase the efficiency of current work, and create the basis for more objective control and encouragement of workers.

The UOC cycle begins with an analysis of what has been done so far, determining the desired characteristics of the expected result, and detailing upcoming actions. All materials necessary for this are contained in the plan and other official documents of the organization.

The next step is to create a so-called Declarations- a document containing a system of individual and collective goals of employees of an organization or division. When creating the Declaration, the manager brings to the attention of his subordinates the main positions contained in the plan, on the basis of which he helps to draw up a list of individual or group goals, organize, if necessary, their comprehensive discussion and agreement. He determines his own personal goals together with his immediate management.

In order for goals to really increase the work activity of staff, they must correspond to the main directions of the organization’s work, the interests of the staff, be sufficiently difficult and exciting, and awaken passion and desire in people to prove themselves.

The declaration allows you to identify specific persons responsible for a particular matter; the responsibilities of each of them in the process of achieving the goals; strengthen the connection between official and personal goals; create the necessary basis for personalized moral and material encouragement in accordance with the contribution to the common cause that everyone was going to make.

This procedure is implemented at all levels of the organization, starting from the highest, in the process of bilateral and multilateral consultations. During them, priority personal goals are formed, which are of particular importance for achieving general ones, job descriptions and individual evaluation criteria are clarified.

When determining personal goals, which are usually set for the year, they are based on job responsibilities and the real capabilities of the performers, taking into account the optimization of the final results. Subjective values, financial situation, age, health, and marital status of the employee are also taken into account.

It is necessary to clearly formulate goals, otherwise they cannot be achieved, and choose a real path to success, avoiding failures due to overestimation of strength. The unclear formulation of the goal leads to the choice of erroneous means, the inability to correctly distribute responsibilities and evaluate activities. Such a system of individual targets, in contrast to planned ones, is both stable and flexible.

Then a specific action plan is drawn up to achieve each goal (deadlines, intermediate and final results, resources) and the manager’s responsibilities are determined.

It must be borne in mind that the formulation of the objectives of the Declaration is fraught with a number of difficulties. To compile it, a lot of preparatory work is required and, accordingly, a considerable investment of time and money. It requires that all goals be expressed in quantitative terms, since their achievement is the basis of incentives. In practice, this is not always possible to achieve. The declaration is not suitable for workers. It is often subjective, because they try to include, first of all, “beautiful,” global, prestigious, rather than practical goals; current goals, instead of those focused on finding additional opportunities; goals related to solving superficial problems and ignoring implicit ones, which may be of paramount importance for the organization.

Summing up the results of employees' activities within the framework of the UPC serves as the basis for a new planning cycle. It includes the definition of criteria and targets against which the employee’s performance will be assessed in the next period, and the development of measures aimed at achieving them.

Experts note the following advantages of management by objectives:

1) The UPC ties work with personnel to strategic planning and makes it possible to quickly respond to changes in external conditions, allows employees to know exactly what is needed from them, improves communication between managers and subordinates;

3) the productivity of people who have specific goals is higher than the productivity of those who do not have goals. This is not least facilitated by providing people with independence and comprehensive information about the tasks of the organization and their own role in solving them;

4) the manager in the UOC system acts in relation to his subordinates primarily as a controller, regularly meeting with them for an interim assessment (if the goal is annual, then quarterly), which is carried out by comparing the results achieved with the provisions of the Declaration and the goals of the organization.

Control can also be carried out, for example, using a schedule, which reflects the plan and actual performance of work.

The method of management by objectives in an enterprise is an effective organizational system that can be used in business to improve its economic performance. At the same time, management by objectives, as management, has many features and nuances that should be taken into account when planning the implementation of a similar method of organizing management and work in the enterprise as a whole. We should also not forget that management by objectives is not always a justified tool and has its own characteristics, advantages and disadvantages.

Management by objectives - what is it?

The management by objectives method, or MBO (Management by objectives), was formed by one of the leading management theorists, the American Peter Drucker, in the mid-20th century and subsequently developed further as a separate direction in organizational management. In general, management by objectives is a method of organizing work that involves an initial study and determination of the main goals and objectives both for the entire organization as a whole and for each individual employee who is significant in terms of achieving them in a vertical order.

This method involves the formation of a special management model, which allows simultaneous resolution of many issues. In particular, management by objectives makes it possible to increase their loyalty to the enterprise, tie personnel costs to the efficiency of economic activity and develop principles for the proactive strategic and tactical development of a business entity in the future.

The method of management by objectives in its fundamentals denies proper efficiency with the help of purely administrative and authoritarian attitudes - job descriptions and internal rules, just as it does not accept the chaotic lack of subordination at work within the framework of humanistic concepts.

In general, considering management by objectives as a method of management within a structural unit or the entire organization as a whole, it can be noted that it combines both authoritarian and humanistic features. On the one hand, the main goals are established primarily by the management team, on the other hand, they are established in accordance with the capabilities of the employees themselves and within the framework of their direct area of responsibility, among other things.

Principles of management by objectives in organizational management

Before using management mechanisms by objectives in the management of an organization, you should become familiar with the basic principles on which such a process is based. So, they look like this:

Only if all the above principles are observed, a management by objectives system can demonstrate its effectiveness. At the same time, certain achievements can be ensured by the partial use of this system, but not in every case - failure to follow the above requirements even in one aspect can seriously reduce the overall quality of the organization’s management.

How to correctly determine the goals of the enterprise and employee

Setting goals at the enterprise for subsequent management, in accordance with the basic principles of the system under consideration, should be carried out in accordance with SMART technology (translated from English as smart). This technology and the principles used in it for determining goals are deciphered as follows:

S – Specific – specification or specificity. Each goal must be precisely formulated, without using any abstract concepts or ambiguous interpretations.
M – Measurable – measurability. The goal must be measurable - that is, have some reflection in the form of indicators that can be measured. Only measurable goals can be achievable in principle.
A – Achievable – achievable. Although specific and measurable, the goal still cannot necessarily be achievable. Achievability implies not only the ability to actually achieve a given goal, but also the absence of automaticity. That is, the need to take any action to achieve it.
R - Relevant - relevance. This principle involves the coordination of each employee goal with the overall goal management system and with the goals of the entire enterprise. All goals should ultimately bring closer the achievement of the goals set for the entire organization.
T – Time-bound – time binding. Each goal must be accompanied by precisely established deadlines for its implementation.

Based on the principles of SMART technology in goal setting, it is possible to formulate a general standard for describing such tasks facing employees. Each enterprise has the opportunity to use its own forms, but the following option will be optimal for taking it as a basis. So, each specific task must have:

Name. The employee and manager should easily track the implementation of goals by their name without unnecessary confusion.
Description. The task description will help both the employee and the manager. It is not necessary to describe the purpose in all details - it is enough that the participants in the process have a full understanding of the relevant purpose.
Measurement criteria. A goal can be measured not only in the format of achieving it or not achieving it. A specific measurement of its implementation is also allowed - in percentage, units of goods, number of services provided or any other indicators.
Correlation with fact. Each goal should be based on actual existing indicators and imply their certain improvement.
The importance of the goal. Since several goals are set for each employee, it is necessary that each task has a certain weight - it is easiest to set it as a percentage of the employee’s labor effort and working time and the importance of the goal for the organization

In this way, effective and simple assignment of tasks to employees can be ensured, as well as clear tools for monitoring the fulfillment of goals and the development of the enterprise in general. An example of a ready-made goal for an employee involved in writing texts might look like this:

“Until July 31, 2018, ensure the writing of 120 articles per month in order to exceed the existing figure of 100 articles per month by 20%.” Or “Reduce the number of documents sent for revision by the editor so that this figure does not exceed 5% until July 31, 2008.”

An example of the goals of his direct supervisor, the editor, might look like this:

“Ensure effective management of employees, achieving an increase in the total number of articles during the month from 500 to 600 by 07/31/2008.”

Thus, in the above example, you can clearly see how the goals of one employee are consistent with the goals of his direct management, ensuring an overall increase in the efficiency of the department, and, as a result, the entire organization.

How to implement management by objectives in an enterprise

The implementation of a goal-based management system in an enterprise is a complex and quite complex process that can be implemented in two main ways. Namely:

Primary goal setting is carried out on a top-down basis. In this case, the formation of goals occurs primarily from managers, based on the overall goals of the organization. In this situation, it is logical to initially select the main criteria used in this system, and the goals will be distributed by the management, subject to the presence of feedback and dialogue with the business process links that are subject to them.
Goal setting is done from the bottom up. This situation involves the initial setting of goals directly by the performers based on their personal vision of the situation in the enterprise. At the same time, the goals are adjusted and approved by managers. This approach is relevant for the initial implementation of a management system by objectives, since it demonstrates less effectiveness in increasing the economic performance of the organization as a whole, but provides a high level of motivation and immersion in the process among employees.

When implementing a management system by objectives in an enterprise, it should be borne in mind that it must be formed in accordance with some basic rules:

First of all, it is necessary to divide employees into categories. The first category includes employees who must set goals for themselves and their subordinates - this, first of all, concerns the direct management of the company. The second category includes workers for whom setting goals is not mandatory, except in situations where their direct manager decides so. Thus, the second category includes personnel who do not actually influence the efficiency of the enterprise as a whole due to the nature of their activities. For example, accounting employees, provided that all their duties are fulfilled, have extremely limited opportunities to improve the efficiency of their activities in general and the operation of the enterprise.
Goals must have a strict hierarchy and complete sufficiency. Thus, goals of a lower level must ensure the fulfillment of goals of a higher level when they are added. In this case, the determination of goals should occur in a hierarchical sequence according to the chosen mechanism without violating the basic order.
The created cascading tree of goals should be regularly checked to ensure that all tasks comply with the above principles.
Employees must have at least one goal, formed by them personally, which will significantly increase their motivation and increase participation in the activities of the enterprise.

Advantages and disadvantages of a management system by objectives

In general, the management system by objectives has a number of both strengths and weaknesses when used in practice. The advantages of such a system include its following features:

However, this method of organizing work also has problematic aspects. These include the following most common management errors that arise when applying a management system by objectives:

Using management by objectives without specific goals. Using any labor organization system without understanding the specific purposes of its application and the expected result is a common mistake of managers. Therefore, both management and each individual performer must understand that the main goal of implementing this system is to increase market satisfaction with the services provided or goods sold, and therefore to increase the efficiency of the organization’s economic activities. Otherwise, the use of the MBO system may not bring any benefit, but only become an additional useless burden.
Inadequacy of established goals. Management in a goal management system primarily strives to achieve their own results, most often without realizing the real capabilities of employees and how they can achieve their goals, which leads to setting simply unattainable goals. At the same time, employees, on the contrary, believe that their superiors are trying to load them to the maximum, therefore the goals they set are often created with a certain “margin” of safety and do not correspond to their real capabilities. This problem can be mitigated only by collectively setting goals, taking into account the opinions of both the employee and management, and searching for compromise solutions that satisfy both parties.
Detaching the solution of strategic problems. A management system by objectives most often involves an actual shift in the focus of all participants in business processes to solving tactical issues that are relevant in the near future, the implementation of which will allow achieving clearly defined results in the foreseeable future, and not in the future. Accordingly, some goals should be set as global and have a long period of implementation. In addition, even setting short-term goals should imply a clear understanding of their consequences and results in the long term.
System operation. When developing goals, each link participating in this process strives first of all to achieve the solution of its own tasks, which can reduce the overall efficiency of the organization. Therefore, each of the goals must be consistent both horizontally and vertically. At the same time, it is also possible to set certain mixed, collective goals, which will make it possible to level out the indicated drawback of the management system.

Send your good work in the knowledge base is simple. Use the form below

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Similar documents

The essence, goals, objectives and main stages of the management method by goals (results), its advantages and disadvantages. The principle of decomposition of tasks “top-down” and “bottom-up”. Development of measures for the implementation of a management system by objectives at the enterprise.

course work, added 10/02/2011

The meaning of the management method by objectives and the features of each of its stages. A number of important functions of goals in the organization’s management system and a set of requirements for them. Their systemic nature and classification. Implementation of the "Management by Objectives" system.

course work, added 07/20/2011

Two ways to increase the efficiency of a company through motivation and interest in achieving certain goals and results by its employees. A step-by-step approach to the implementation of the management by objectives method in enterprises and organizations.

course work, added 09/04/2015

Theoretical foundations of management by objectives. Management goals and their functions. The main stages of management by objectives. Analysis of the goals of the enterprise (structural divisions). Proposals for clarifying the goals of the enterprise.

course work, added 04/12/2008

Theoretical foundations of management by objectives. Management goals and their functions. The main stages of management by objectives. Analysis of enterprise goals. Determination of key goals based on SWOT analysis. Proposals for clarifying the goals of the enterprise.

course work, added 05/12/2008

The essence and purpose of using collective forms of remuneration in production. Brigade form of work organization. A system of labor incentives based on goals and using the employee’s labor participation coefficient. Features of the "GROWTH" concept.

course work, added 12/09/2014

Definition of the mission, its role in the strategic management of the company. Goals of the organization, their classification. Properties and requirements for the goals of the organization. Development of the company's mission and goals, possible mistakes. Examples of missions of some large companies.

thesis, added 06/14/2009

The technology of “Management by Objectives” - MBO (Management by objective) was proposed by Peter Drucker in the 50s of the twentieth century. According to his formula, the effective operation of an enterprise requires that each work be subordinated to common goals. In particular, the efforts of managers should be aimed at ensuring the success of the enterprise as a whole.

The essence of the concept of management by objectives, also called management by results, is to focus on the final result. The goal and the result are inseparable in this approach. When managing work to achieve a goal, you should constantly take into account the results achieved.

Goals are a specification of the organization's mission in a form accessible to manage the process of their implementation.

The main task that the Management By Objectives system was supposed to solve was increasing the agility of a business organization.

There are many definitions of management by objectives:

Management by objectives is an organization management system (or a system of management methods) that simultaneously connects both goals and planning objectives, as well as all activities of the organization.

Management by Objectives is a systematic and organized approach that allows management to focus on achieving goals and achieve the best results with available resources.

Management by objectives is the work of management to formulate the goals of the organization, communicate them to employees, provide them with the necessary resources, as well as distribute roles and responsibilities for achieving the goals.

Target management methods assume that the manager is obliged to determine in advance the final results of his actions and develop work programs to achieve them. This approach to management is characterized by the presence of a plan for solving problems, even if these are such unexpected events as machine breakdowns, changes in product designs, interruptions in the supply of necessary materials, etc. The style that dominates in this zone of the management spectrum does not require the constant presence of a manager in his office. workplace. No matter what problem arises, there is always a plan in place to determine the course of action and methods that will best solve a particular problem.

The use of management by objectives (results) systematizes the management process, increases the performance of the enterprise, is an effective tool for establishing and maintaining a quality management system in the enterprise, maintaining quality at all levels of the enterprise.

Management by objectives (results) places high demands on personnel. The better an employee understands the goals set for him and the more accurately the latter correspond to his internal aspirations, the more likely such goals will be achieved.

The functioning of a management system based on goals (results) is based on three basic principles: decomposition of tasks “top-down”, feedback “bottom-up” and “intra-company labor market”.

The principle of decomposition of tasks "from top to bottom". The work of the MBO system is based on the decomposition of the tasks facing the organization according to the existing management hierarchy in the company. The company's objectives - they are set to the general manager by the business owners or the general manager formulates them himself - the general manager breaks them down into subtasks, which he then distributes among his subordinates (top managers). In this case, subtasks are identified in such a way that their solution provides a solution to the initial task that was posed to the general manager and, accordingly, to the company as a whole. Exactly the same procedure for decomposing tasks into subtasks is repeated at lower levels of the management hierarchy: top managers form subtasks for their direct subordinates based on their tasks, etc. .

The principle of bottom-up feedback. In the process of agreeing on a task between the manager who formulated it and his subordinates, to whom the task is assigned, adjustments may occur to the content of the task, its level of priority or deadlines. On the one hand, during a joint discussion and exchange of argumentation, an equal understanding of the wording of the tasks is achieved, and the task itself can be transformed into a more accurate and correct one in content. On the other hand, the approval process ensures the necessary balance between the desired results and the resources available in the company. How “objective” is this kind of resource assessment? Is there a danger here that subordinates will underestimate their “real” capabilities? Here it is necessary to keep in mind: the main resource in this case may not be money, not production capacity, not the number of working people, but, first of all, the subordinate himself. Together with the money, capacity, and employees at his disposal. And together with your ability or inability, desire or unwillingness to achieve the desired result using the available means. This is all the more true the higher the subordinate's position. A manager's main resource is his skill in managing other resources. It follows: the higher the hierarchical level at which the task is agreed upon, the more important is the discussion and voluntary, responsible acceptance of the task based on a realistic self-assessment of the performer’s capabilities.

During the coordination, the manager can and should suggest solutions to the subordinate manager that he could not see. He can and should convince and inspire him. It is important, however, to stay on the edge, beyond which the pressure on the subordinate becomes tantamount to orders issued from above that are “not discussed.” Once you cross this line, the consent of the performers will turn into a formal ritual. In such situations, the likelihood of obtaining results, especially if it requires non-standard moves and exceptional efforts, will sharply decrease: without internal acceptance of tasks, neither initiative nor a breakthrough beyond what is being done and has been done in the company until now is possible.

The principle of the “intra-company labor market”. Unlike functional responsibilities, tasks (planned tasks) in a results-based management system are unique each time and cannot be provided for in advance in standard contracts concluded when hiring. In a sense, planned tasks are additional labor costs not provided for in the original terms of employment. It is precisely because of this circumstance that the relationship of voluntariness and equality of the parties in the process of agreeing on tasks are so important. In fact, agreement is a kind of “bargaining” between the parties, and the agreement reached is a kind of “microcontract”. The terms of such a local contract include the task itself, the timing of its completion, additional resources provided to the performer, as well as the form and amount of remuneration/bonus depending on the achievement of the final result.

Despite many advantages, the management system by objectives also has a number of disadvantages (Table 1.1).

Table 1.1 - Advantages and disadvantages of the concept of management by objectives (results)

Advantages	Flaws
Increasing work efficiency due to the fact that each manager has a clear understanding of both his goals and the goals of the organization as a whole	Not applicable to the management of an organization, where it is customary to determine goals only by top management, without involving managers at all levels in this process
Increased motivation to work, since in these conditions everyone feels a personal interest in achieving goals	Difficult to use without personal motivation
Visibility of achieving the final result, because the time frame for its achievement is clearly formulated	Managers' attention is focused on achieving current and short-term goals (results), i.e. to the detriment of strategic long-term goals
Improved relationships between managers and subordinates due to transparency and alignment of goals	A labor-intensive, complex and lengthy process that produces results only when and where the manager himself chooses a model of action (behavior)
Improving the system of monitoring and evaluating the work of each member of the organization (in accordance with the results achieved)	The presence of a weak information management system (its availability) results in unsatisfactory organization of control

The value of the results of management by objectives increases when management methods allow you to program actions taking into account real time and cost constraints. Obviously, value is diminished when work is started before programming has been completed - this inevitably leads to costly adjustments.