Management By Objectives

by Jean-Pierre Potvin

To direct the performance of individuals or groups of employees properly, managers need simple, efficient, and, above all, flexible methods. Management by objectives, job reinforcement and enrichment, and employee participation in the management process are some of the best methods.

Simply voicing your expectations of your employees is not enough-this addresses their intentions to do a good job, but not their performance or productivity level. To transform intention into performance, the employee must adopt clear objectives. For a genuine rise in the level of performance, the objectives must be specific, achievable, and challenging.

The best way to make objectives specific is to express them quantitatively-that is, to specify actions to be taken, an end result, a deadline, and/or a cost. For example, you might give an employee the objective to increase sales by 25% before January 30. Specific objectives are much better than more general instructions because they make your expectations clear. Specific objectives are easier to internalize and visualize, and they lead to more focused actions and consequently better work performance.

It's also important set ambitious objectives-employees expect to succeed in their work, and they want to accomplish something of value for themselves and their employer. Ambitious objectives that demand more tenacity must still be achievable so the employee doesn't get discouraged.

Employees will accept their new objectives if they've been consulted by management on their development and if they trust that they'll have a certain degree of latitude in determining how to achieve them.

An employee's efforts to meet objectives must be accompanied by continuous follow-up by the coach. People will perform better if they frequently receive specific and constructive feedback. The feedback not only encourages them by reinforcing the purpose of the objectives, but also focuses their efforts on the given objectives.

This permits them to adjust their actions. Job reinforcement and management by objectives can't be separated-the objective is the goal to be reached, and the feedback is the road to getting there.

Finally, it's essential to define the objectives in terms of the company's overall vision and its concrete business strategy. When the employees understand how their objectives fit into the big picture, they can appreciate that they're participating in the company's vision and recognize the tangible results of their work. This reinforces the significance of the employees' objectives and strengthens their commitment to them.