Four Steps of Management by Objectives

Introduction

Management refers to the process of coordination and administration of the tasks to achieve a certain goal. Activities including setting the organization's strategy and coordinating staff’s efforts to accomplish the objectives by using the available resources. According to Brian Tracy, the most powerful motivation in the world is Management by Objectives. It is the most consistent one as well. Peter Drucker first talked about Management by objectives. It aims to improve the organization’s performance by clearly defining the objectives. These objectives are agreed by both, the management and the employees. It encourages participation and commitment among employees when they have a say in the setting of goals and action plans. Brian Tracy gave four steps of Management by objectives.

Four Steps to Management by Objectives

The four steps to the process of management by objectives are as follows:
1. Determining exactly which goals and objectives of the company are to be accomplished:
Brian Tracy mentions that the first step of the four steps of management by objectives is to determine exactly which goals and objectives of the company are to be accomplished. In this step, you are required to be clear about your goal but also need to be flexible towards the process of achieving it. It requires the management with participation and a complete discussion to ensure that there is total agreement between you and the employee regarding the job that is to be done. 

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2. Discussing the ideas with the individual regarding the achievement of goals:
In the opinion of Brian Tracy, the second step of the four steps of management by objectives is to discuss with the individual the various ways to achieve the goal or complete the job. You should give your ideas and input regarding the task. These suggestions about the ways to accomplish tasks must be specific, measurable, acceptable, realistic, and time-bound.
3. Establish clear measurements and benchmarks:
According to Brian Tracy, the third step of the four steps of management by objectives is to establish clear measurements and benchmarks. When you are managing, you must tell the individual employee exactly how that task will be measured and tell him about the various benchmarks that you will be using to make sure that the task is accomplished on time and within budget. The employees should also be encouraged to set their objectives to achieve the bigger objectives of the organisation.

4. Get the Report on Progress and get feedback on the job:
Brian Tracy opines that the fourth step of the four steps of management by objectives is to get the report on progress and get feedback on the job. The management by objectives can only be used with people who are competent and have proven their capabilities of completing a task with very little or no supervision. You can turn over 100 percent of the responsibility to that person for the attainment of the objective if you have that kind of competent person in your company.

Summary

The four steps of management by objectives given by Brian Tracy contribute a lot to the company's success. The advantages of following these steps include that the employees start taking pride in the work that they do and also in the goals that they know they can achieve. The employees in this process get aligned with their strengths, skills, and educational experiences. It also leads to better coordination due to the increased communication between management and employees. The loyalty of the employees to the company increases when they are assigned tailored goals. It ultimately leads to the great success of the company.