Management by Objectives (MBO)

It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives.

Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his book 'The Practice of Management'. In the 90s, Peter Drucker himself decreased the significance of this organization management method, when he said: "It's just another tool. It is not the great cure for management inefficiency... Management by Objectives works if you know the objectives, 90% of the time you don't."

Core Concepts

According to Drucker managers should "avoid the activity trap", getting so involved in their day to day activities that they forget their main purpose or objective. Instead of just a few top managers,  all managers should:

• participate in the strategic planning process, in order to improve the implementability of the plan, and
• implement a range of performance systems, designed to help the organization stay on the right track.

Managerial Focus

MBO managers on the results,  not the activity. They delegate tasks by "negotiating a contract of goals" with their subordinates without dictating a detailed roadmap for implementation. Management by Objectives (MBO) is about setting yourself objectives and then breaking these down into more specific goals or key results.

Main Principle

The principle behind Management by Objectives (MBO) is to make sure that everybody within the organization has a clear understanding of the aims, or objectives, of that organization, as well as awareness of their own roles and responsibilities in achieving those aims. The complete MBO system is to get managers and empower employees acting to implement and achieve their plans, which automatically achieve those of the organization.

http://www.1000ventures.com/business_guide/mgmt_mbo_main.html

Human Resource Development: self motivation and in-role job performance

A cross-sectional survey of 283 employees in a Fortune
Global 100 company in Korea suggests that employees perceived
higher in-role job performance when they had higher core self-evaluations
and intrinsic motivation. Intrinsic motivation partially mediated the relationship
between core self-evaluations and job performance, and it also fully
mediated the relationship from job autonomy to job performance. Thus, to
increase motivation and job performance, managers and HRD professionals
need to create an integrated strategy incorporating enhancement of selection
methods, elements of job redesign, and interpersonal developmental practices
such as coaching and mentoring.




Job involvement has been defined as an individual's psychological identification or commitment to his / her job  It is the degree to 'which one is cognitively preoccupied with, engaged in, and concerned with one's present job. Job involvement involves the internalization of values about the goodness of work or the importance of work in the worth of the individual. As such individuals who display high involvement in their jobs consider their work to be a very important part of their lives and whether or not they feel good about themselves is closely related to how they perform on their jobs. In other words for highly involved individuals performing well on the job is important for their self esteem. Because of this people who are high in job involvement genuinely care for and are concerned about their work.

The challenge for HR professionals is to find a balance between motivating employees (by aligning the organization's goals with that of the employee) while at the same time prioritizing and encouraging the success of the organization.

http://findarticles.com/p/articles/mi_qa5335/is_200801/ai_n24393604/

http://onlinelibrary.wiley.com/doi/10.1002/hrdq.20053/pdf

Internal Recruiting

Internal Recruitment can offer a company a lot of benefits. The ability to recruit and promote from within offers a sense of familiarity with the company's business practices and corporate culture.

Internal recruitment can also cost the organization less money and in the process than external recruitment. The employee who works with the organization usually does not demand a big salary and is available for a transfer much quicker. Additional benefits of Internal Recruiting include motivation of employees to work harder in the hopes of being promoted  and achieving their own long-term individual goals.

Methods of internal recruitment

• Intranets.

• Staff notice boards.

• In-house magazines / newsletters.

• Internal notices.

• Meetings.

• Personal recommendation – often referred to as ‘word of mouth’.

 

Advantages of internal recruitment

• Cheaper and quicker to recruit.

• People already familiar with the business and how it operates.

• Provides opportunities for promotion with in the business – can be motivating.

• Business already knows the strengths and weaknesses of candidates.

Disadvantages of internal recruitment

• Limits the number of potential applicants.

• No new ideas can be introduced from outside the business.

• External candidates might be better suited / qualified for the job.

• May cause resentment amongst candidates not appointed .

• Creates another vacancy which needs to be filled.

• Longer process.

I feel that  a combination of the two- External and Internal Recruiting is necessary in order to maintain a balanced workforce and a diversed corporate culture. Adding "new blood" will ensure new ideas and problem-solving techniques critical for the success and survival of any company.

http://in.answers.yahoo.com/question/index?qid=20060821053204AA5NCW2

http://ideas.repec.org/a/ucp/jlabec/v14y1996i4p555-70.html

 

Social Media at Work: Pros and Cons

Today's Social Networks such as Facebook, Twitter, MySpace, hi5 and others are changing the way  companies all around the world do business and build professional relationships. These Social Networks provide a wealth of opportunities for companies, big or small, to attract and retain new talent. It is estimated that the most popular social networks (Facebook, Twitter and MySpace) have an estimated 800,000,000 users combined- making them highly attractive to those companies looking to expand their reach  for the best and brightest; build and maintain a cohesive, interconnected line of communication within the organization, and propel the organization forward.


A Study conducted by AT&T survey 2,500 employees in five European countries. Of the employees using social networking sites:

• Sixty five percent said social networking made their colleagues and themselves more efficient workers.
• Forty six percent found that it gave them more ideas and made them more creative.
• Thirty eight percent found that social networking helped them to gain knowledge and come up with solutions to problems.
• Thirty six percent reported that social networking allowed them to collect knowledge about employees and customers.
• Thirty two percent asserted that sites created team building opportunities.

Pros

• Networking, Collaboration and Information sharing
• Boost Innovation and Knowledge Creation
• Increased Productivity
• A More Cohesive Workforce
• Retention of Old and New Talent
• More Attractive to New Hires
• Increased Productivity

Cons

• Privacy Threats
• Cyber Bullying/Cyber Stalking
• Data Leakage
• Brand Credibility
• Potential Lost Productivity

Overall, Social Networking positives outweigh any negatives such as web threats, leakage of company's sensitive data, etc. By setting security and usage policies, companies can rest assure the Social Networks can be used as a asset and not threat to the organization.

In the book "Social Media at Work" by Alcalde-Marr and Kassotakis, we learn of all the many different facets of the Social Networking revolution and how it can change the way companies do business in a positive and profitable way. There is also a negative side to allowing social networking (p160) in the workplace and rules and boundaries ought to be set. A clear company philosophy, restricted usage time, use of caution when referring to company's clients and sensitive information, be mindful of copyrights and other legal issues, as well as a comprehensive disciplinary action policy to be strictly enforced which may include suspension and/or termination. These guidelines should be part of any effective Social Networking policy.

I found the following articles to be very helpful

http://www.techrepublic.com/blog/10things/10-things-you-should-cover-in-your-social-networking-policy/875


http://www.hreonline.com/HRE/story.jsp?storyId=114230045


http://network.nationalpost.com/np/blogs/fpposted/archive/2009/02/15/social-networking-in-the-workplace-a-smart-business-strategy.aspx

An Overview of Social Networking & Human Resources

Check out this SlideShare Presentation:

An Overview of Social Networking & Human Resources

View more presentations from Connie Crosby.