Originally introduced in the 1950’s, the concept of Management by Objectives (MBO) encouraged the involvement of employees in the company’s goal setting process to increase engagement and improve results. By the 1980’s practically every modern Fortune 500 Company had implemented a goal setting process as part of their overall performance management practice. By setting goals, the organization could focus performance on those activities that would yield the greatest results.
Most successful organizations have transitioned from the traditional employee appraisal process to the more enterprising performance management process that ties employee performance to organizational performance through its mission, vision and values. Management teams have discovered that when they do not deploy cascading goals from the executive suite to divisions, departments and individual employees, the organization experiences a misalignment with their overall goals. This misalignment results in unclear goals at the department and employee level.
Can you answer yes to the following question? At work, do you have the opportunity to do what you do best every day? According the author Tom Rath in the book Strengths Finder 2.0, those who answered yes to this question are six times more likely to be engaged in their work and three times more likely to have a better quality of life in general. According to this study by the Gallup organization of over 10 million people, only a third of them “strongly agreed” with this statement.