Management by Objectives and sustainability: how and why to integrate ESG objectives into an MBo system

What is Management by Objectives?

The Management by Objectives (MbO) is a personnel evaluation system based on the achievement of common objectives defined by the company. Management communicates specific objectives and strategies to achieve them, linking part of the salary to their achievement. This method motivates staff and rewards performance, encouraging accountability.

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Why integrate sustainability objectives into MbO systems?

Promote aintegration between social and environmental sustainability objectives within the MBo of managers strengthens corporate reputation and stimulates responsible action, orienting results towards benefits not only economic, but also environmental and social. The process breaks down strategic objectives into operational and individual action plans, with periodic monitoring to evaluate progress and correct any deviations.

MbO encourages active participation, improves communication between organizational levels and promotes effective teamwork, promoting continuous improvement and greater employee satisfaction.

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