MBO process: an ally for HR management when your teams work remotely

February 4, 2021

Featured-Image_Blog_MBO process: an ally for HR management even when your teams work remotely_EN

HR management can find many advantages in the MBO technique, one of the most effective processes for managing teams. Its acronym MBO comes from its English name: ‘management by objectives’. It is a term coined in 1954 in the book ‘The Practice of Management’ by Peter F. Drucker, an American author considered the father of modern business administration.  

Planning is the central concept underlying the MBO technique. Setting objectives and action plans encourages employee participation and commitment to achieving goals. People attain greater success by working together as a team rather than individually. In this sense, MBO-based management helps to define objectives and encourages continuous communication between managers and their teams. As we have seen, the first step is to identify objectives to be achieved. Forbes recommends using the SMART method to define realistic objectives for an organization. This acronym is composed of five requisites: 

  • Specific: define what you want to improve 
  • Measurable: which KPI will you use  
  • Achievable: do you have the capacity to achieve this  
  • Relevant: turn it into something really important for the organization   
  • Time-bound: by when can it be achieved  

 After defining the objectives, the next step will be to boost team performance to achieve these goals. Then it’s time to monitor their progress and give feedback to employees. In this regard, it is important to provide honest feedback and reward employees fairly.  

HR management software: the best way to manage MBO  

MBO is very useful for HR management. It’s a very flexible technique, and each department can tailor it to its own needs. In this sense, the HR manager can define objectives to increase employee participation and satisfaction, reduce labor conflict and stress levels, or improve talent acquisition and retention policies.  

The best way to manage MBO process is HR management software as it helps the HR department and the employees themselves to achieve these objectives. Among other functions, these tools enable more efficient talent management by helping the HR director or Talent Manager to track the progress of KPIs. In addition, these solutions produce reports or graphs in a very simple way with the intention of saving managers’ time and achieving more efficient team management.  

Talentia Software offers the Talentia HCM solution, HR management software that provides HR managers with a simple, real-time data analysis system. Within the solution, Talentia has revamped the Performance module to support HR, managers and employees throughout all steps of the MBO process. It also includes several enhancements to chart analytics and drop-downs for searches. Performing an MBO process is easier with the Performance module of the Talentia HCM solution.