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Management by Objectives (MBO)

A goal-focused performance management method that sets clear, measurable objectives and judges performance by how well results align with project outcomes.

Key Points

  • Objectives are jointly agreed and cascaded from organizational strategy to project and individual goals.
  • Goals should be specific, measurable, achievable, relevant, and time-bound, with success criteria defined upfront.
  • Performance is reviewed by comparing actual results to the agreed objectives and the project's outcomes.
  • Requires regular feedback and the ability to adapt goals as project priorities evolve.

Example

In a software release project, the project manager and team lead agree on objectives: reduce average cycle time by 20% and achieve a 95% automated regression pass rate by the end of the release. Team performance is evaluated against these targets and the quality of delivered features.

PMP Example Question

Which approach focuses on setting measurable goals and assessing team performance based on achievement of project-related results?

  1. Management by Objectives (MBO)
  2. Management by Walking Around (MBWA)
  3. Earned Value Management (EVM)
  4. Delphi Technique

Correct Answer: A — Management by Objectives

Explanation: MBO emphasizes agreed, measurable objectives and evaluates performance by how well those goals tied to project outcomes are met.

Project Management Bootcamp

Embark on a transformative journey with our Project Management Bootcamp at HK School of Management. Elevate from beginner to pro using the latest PMBOK and Process Groups Practice Guide. Our unique, engaging approach makes learning interactive and fun, replacing dull slides with dynamic doodles and real-life scenarios.

This hands-on program includes working on two full project plans. The first evolves as you learn, while the second culminates in a comprehensive plan, solidifying your expertise. You'll navigate real-world challenges, backed by quizzes and in-depth analysis, avoiding common pitfalls and setting you on a path to success.

Enhance your learning with downloadable materials and templates, invaluable for your future projects. The course covers essential topics like PMI, PMO, PMBOK, and project management ethics, delving into critical process groups and key areas such as scope, schedule, cost, and stakeholder management.

Learn from seasoned professionals and join a community of enthusiastic lifelong learners. Ready to master project management and lead with confidence? Enroll now and start your transformation!



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