Let’s assume that graphs above present the performance of two different teams in the same company. The black line is an external metric shared with the management, the blue one is observed internally. The black lines are exactly the same so both teams were able to reduce errors significantly to the same level – the goal was achieved. One may say that there is no difference between these two teams. For sure the difference is not observable for a management. Project was finished successfully so we are waiting for a next challenges.
It is believed that management by objectives is the best way to inspire employees to work efficiently. How it works?
An organization defines its goals. It is usually done for one year.
Employees choose their goals from the lists provided by their managers.
Working on everyday tasks and measuring the work progress and performance.
Performance evaluation, providing feedback and rewards or punishments
It seems simple but what about if management by objectives inspire employees to win in the lottery with the one rule: “there are no rules”? There are no rules to make goals from the lists and the only reason to achieve the good result during the evaluation are rewards or fear of punishment?