BUSINESS

Management By Objectives

Published

4 weeks ago

Management By Objectives

Effective management is essential for leading firms to success in the quickly changing business environment of today. Management by Objectives (MBO) is one strategy that has been increasingly well known over time. Peter Drucker, the father of management, created the MBO, which places a strong emphasis on goal-setting, coordinating individual work with organizational objectives, and enabling staff members to take responsibility for their work. In addition to discussing the benefits and guiding principles of MBO, this article offers helpful advice for putting it into practice in businesses: “Management By Objectives”

MEANING OF MANAGEMENT BY OBJECTIVE

Management by objectives (MBO) is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees. According to the theory, having a say in goal setting and action plans encourages participation and commitment among employees, as well as aligning objectives across the organization.

Management By Objectives

Understanding Management By Objective

At its core, MBO is a collaborative goal-setting process that fosters employee engagement by aligning personal objectives with organizational goals. It involves the following key steps:

Defining organizational goals: Clear objectives are established by top-level management, ensuring alignment with the company’s vision, mission, and strategic goals.
Cascading objectives: Once the organizational goals are set, they are cascaded down to each level of the organization, ensuring alignment and coherence.
Collaborative goal setting: Managers work together with employees to set individual objectives that contribute to the achievement of broader organizational goals. This encourages employee involvement and accountability.
Regular tracking and review: Progress towards objectives is regularly tracked and reviewed, providing opportunities for feedback, coaching, and adjustments as needed.

Steps of Management by Objective

These are the steps involved in following through the theory of management by objective:

Establish organizational goals: Determining the organization’s goals and objectives is the first stage in management by objectives. The organization’s mission, values and long-term plan should all be in line with these objectives. It is imperative that upper management, upper management, middle management and staff members collaborate and communicate clearly in order to guarantee that all parties are aware of and supportive of these goals.
Set individual objectives: Once the organizational goals are established, the next step is to translate them into individual objectives. Each employee should be involved in this process, discussing and negotiating their specific objectives with their managers. Objectives should be SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) to ensure clarity and effectiveness. The involvement of employees in goal-setting cultivates a sense of ownership, commitment, and enables them to understand how their role contributes to the bigger picture.
Monitor progress and performance: To guarantee that workers stay on course, regular tracking and assessment of each goal’s progress is necessary. Check-ins, project milestones, or performance evaluations can all be used for these assessments. To assist staff members in overcoming challenges and effectively completing their goals, managers should provide encouragement, direction, and feedback. Monitoring development makes it possible to spot problem areas and take prompt action to guarantee that the objectives of the company are being met.
Provide feedback and recognition: In the MBO process, feedback is essential. Recognizing their achievements and addressing any problems or difficulties, managers should give their staff members constructive criticism. Good feedback improves employees’ performance overall, encourages them to pursue greatness, and fosters a culture of continuous improvement. Acknowledging and rewarding accomplishments helps to maintain a feeling of accomplishment and provides motivation for regular goal completion.
Review objectives: In order to adjust to the evolving corporate environment, it is imperative to analyze and assess objectives on a regular basis. Managers ought to evaluate if the set goals are still pertinent, demanding, and consistent with the strategic orientation of the company. To make sure that goals are in line with changing priorities and market conditions, they may need to be modified or updated.
Foster communication and collaboration: Open communication channels are crucial for successful MBO implementation. Regular meetings, feedback sessions, and collaborative discussions enable employees to share progress, challenges, and lessons learned. Such active communication builds trust, encourages teamwork, and enhances cooperation within the organization. It is crucial to foster a supportive environment where employees can openly share their thoughts, concerns, and ideas for improvement.

Benefits of Management By Objective

MBO is a goal-oriented management philosophy that enhances productivity, fosters employee engagement, and aligns organizational objectives with individual goals. These benefits are outlined below:

Clear Goal Alignment: Management by Objectives emphasizes setting clear, measurable, and achievable goals that align with the organization’s overall strategy. By collaboratively defining objectives, managers and employees establish a shared understanding of priorities. When everyone is on the same page, it improves coordination and eliminates ambiguity, enabling better decision-making and resource allocation.
Enhanced Employee Engagement: MBO empowers employees by involving them in the goal-setting process. When employees actively participate in defining their objectives, they gain a sense of ownership and accountability. This involvement fosters motivation, as individuals feel more engaged and connected to the company’s mission. Increased engagement leads to higher levels of productivity and job satisfaction.
Improved Performance Evaluation: Under the MBO framework, managers and employees establish specific, measurable, actionable, realistic, and time-bound (SMART) goals. These goals provide a clear basis for performance evaluation. Regular progress check-ins and feedback sessions allow employees to understand where they stand and make any necessary adjustments to ensure goal achievement. This transparent evaluation process enhances performance and encourages continuous improvement.
Increased Communication and Collaboration: Management by Objectives promotes open communication and collaboration across all levels of the organization. As employees have a say in the goal-setting process, there is an increased sense of camaraderie and shared responsibility. Regular meetings to review progress and discuss challenges provide opportunities for collaboration, idea-sharing, and problem-solving. Effective communication and teamwork are vital for achieving objectives efficiently and effectively.
Focus on Development and Growth: By setting objectives that align with personal and professional development, MBO creates a framework for individual growth within the organization. Employees have the opportunity to identify their skill gaps, pursue professional development opportunities, and work towards their long-term career aspirations. This focus on growth not only benefits individual employees but also contributes to the overall talent development and retention within the organization.
Strategic Alignment: One of the key benefits of MBO is its ability to align individual goals with the organization’s strategic objectives. By ensuring that each employee’s objectives contribute to the overarching goals of the company, MBO ensures a focused and cohesive approach to achieving success. This strategic alignment helps enhance overall organizational efficiency and effectiveness.

Implementing Management by Objectives can be a game-changer for any organization seeking to achieve its goals and objectives more effectively. From clearer goal alignment to increased employee engagement, improved performance evaluation, enhanced communication, and collaboration, and a stronger focus on growth, the benefits of MBO are numerous. See

Implementing Management By Objective

To successfully implement MBO within an organization, consider the following tips:

Establish a culture of goal clarity: Communicate organizational goals consistently and ensure they are understood by all employees. This helps create a shared vision and purpose.
Foster participative decision-making: Encourage employees to actively participate in the goal-setting process, allowing them to provide input and suggestions. This increases their commitment and buy-in.
Provide regular feedback and support: Managers should provide ongoing feedback and support to employees to ensure progress is on track. This allows for timely adjustments and prevents any potential roadblocks.
Implement effective tracking and monitoring systems: Utilize performance management software or tools to effectively track progress, allowing for real-time insights and analysis.
Continual evaluation and adaptation: Regularly evaluate the effectiveness of the MBO process and make necessary adjustments to align with changing business needs and employee development.

Conclusion

Implementing management by objectives can be a game-changer for any organization seeking to achieve its goals and objectives more effectively. In today’s dynamic and competitive business landscape, effective management is crucial for an organization’s success.

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BUSINESS

Resilient Future: The 2023 West Africa Property Investment Summit

Published

3 days ago

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Charting a Resilient Future: Insights from the 2023 West Africa Property Investment Summit

In a significant gathering of real estate influencers, the West Africa Property Investment Summit 2023, which took place on Wednesday, 23rd November, brought together leading figures from Kenya, Ghana, South Africa, and Nigeria. Under the theme “Rewriting the Narrative: Positioning & Strategies for the Future,” the summit served as a vibrant forum for in-depth discussions and strategic planning, aiming to shape the trajectory of West Africa’s real estate landscape: “Industry Leaders Chart Course For Resilient Future At The 2023 West African Property Investment Summit.”

Resilient Future: The 2023 West Africa Property Investment Summit

Resilience in the Face of Macroeconomic Challenges

One of the key speakers, Mr Tola Akinhanmi, the Head of Real Estate Finance at Stanbic IBTC, took centre stage to address the challenges posed by the current macroeconomic environment. Despite grappling with inflation, exchange rate volatility, and fluctuating interest rates, Akinhanmi’s message was one of resilience. He underscored the real estate sector’s intrinsic strength, characterizing it as a long-term asset class that provides essential business infrastructure supporting people’s livelihoods, work, and recreation. Akinhanmi highlighted Stanbic IBTC’s commitment to working closely with sponsors, understanding assets, and structuring solutions that ensure stability, allowing these assets to remain relevant through various economic cycles.

Optimism for 2024: A Balanced Outlook

Oladapo Runsewe, the Projects and City Reports Lead at Estate Intel provided a positive outlook for 2024. Citing statistics from the Nigerian Bureau of Statistics that indicated an increase in the real construction sector’s contributions to the GDP in the last quarter, Runsewe foresaw a balanced and positive effect on the market. He emphasized the inevitability of construction and development continuing, driven by the ongoing demand for housing and real estate investments. However, Runsewe highlighted the imperative for collaboration, urging industry participants and the government to join forces on a larger scale to address the substantial housing deficit, particularly in urban centres like Lagos.

Sustainability as a Driving Force

Temilola Shonola, Head of the Edge Program at the International Finance Corporation (IFC), brought attention to the importance of sustainable building practices. Shonola urged developers to embrace green building, dispelling the misconception that it is an expensive endeavour. She introduced the IFC’s free App designed to simplify the green certification process, making it accessible for builders looking to contribute to environmental sustainability. Shonola stressed that more of the market need to adopt green building practices, not only for environmental reasons but also as a means to reduce utility costs and ensure long-term impact.

Navigating the Commercial Real Estate Cycle

Pepler Sandri, the Director of Capital Markets at JLL, delved into the complexities of the commercial real estate cycle. Acknowledging the sector’s challenges and the impact of the global COVID-19 pandemic, Sandri painted a picture of recovery and resilience. He noted that Nigeria, like many other countries, faced unique macro issues affecting its recovery. Looking ahead, Sandri expressed optimism as interest rates stabilize, predicting a potential recovery in the next 6-12 months in global developed markets. However, he cautioned that Nigeria might experience a longer recovery period, echoing sentiments from Stanbic’s chief economist, who suggested a year or two before a strong trajectory toward recovery becomes evident.

Conclusion: A Call for Collaboration and Sustainable Growth

The West Africa Property Investment Summit 2023 provided an invaluable platform for industry leaders to share insights, strategies, and collaborative approaches to propel the real estate sector forward. As the summit concluded, attendees were left with a renewed sense of optimism and determination to navigate the ever-evolving landscape of West Africa’s property market. The resounding message from the summit echoed the need for collaboration, sustainability, and strategic planning to ensure a resilient and prosperous future for the region’s real estate industry. Read More

BANKING

How Kora Payment Link Helps Online Businesses To Grow

Published

2 weeks ago

softchris4ol

How Kora Payment Link Helps Online Businesses To Grow

The advent of technology with the COVID-19 pandemic has increased the adoption and popularity of online businesses. This is owed to the ability to operate small and medium-sized businesses from anywhere across the globe – which alludes to the fact that the world is now a global village: “How Kora Payment Link Helps Online Businesses To Grow.”

Therefore, there has been a meteoric increase in the number of online shoppers seeking products or services from the available businesses in the digital space.

This is evident in the emergence of e-commerce platforms that operate as an online marketplace for both buyers and sellers. It is also playing out in social commerce through the use of platforms like Facebook, Instagram, or X (Twitter) that people continuously use for their shopping experience.

By and large, online business is today a thriving venture that continues to generate a staggering income for businesses and the local economy.

One of the major perks of online businesses is the flexibility of their payments, such that merchants can offer a range of payment methods. The most common options are bank transfers or card payments, in which businesses provide their customers with bank account details to pay.

But as innovation continues to meet the evolution of online businesses, Kora is making payment strategy seamless for both merchants and their customers. This is through the Kora Payment Link.

How Kora Payment Link Helps Online Businesses To Grow

What Is Kora Payment Link?

A Kora Payment Link is a clickable link that enables business customers to complete a purchase. This is offered as a digital link, which can be used across various social media platforms, websites, or other messaging tools.

How this works is that a customer is directed to a merchant’s online checkout page to complete their transaction anytime they use the Kora Payment Link. This link can be used for both a single transaction, as in a customer invoice and for multiple transactions, as a buy button on social media platforms.

It should be noted that the Kora Payment Link facilitates simple online payments as it does not require a website or code to create and use the link. Therefore, online businesses can easily create a payment link that takes customers directly to the online checkout page of the merchant.

Furthermore, the Kora Payment Link can be used for fundraising, donation, and subscription purposes.

Benefits Of Kora Payment Link To Online Businesses

Accept Payments Anywhere

You can receive payments from your customers across the globe through the payment link that you can easily share on social platforms or websites. This is also a “call to action” strategy to compel your customers to complete their purchase with you without delay.

Keep Payments Simple

Customers do not have to log into a mobile app or website before paying. This is because they can easily click the link anytime and from anywhere to take them to the checkout page to complete their purchase.

Flexible Payment Options

Kora Payment Link provides online businesses various payment options tailored to their preferences. This can be bank transfers, payment cards, or other digital payment methods like Apple Pay or Google Pay.

Therefore, it is the volition of online businesses to design their payment links towards their preferred payment options. Hence attracting customers to complete their purchase with the knowledge that they can use certain payment gateway.

How Online Businesses Can Use Kora Payment Link

Here is a quick step for using the Kora Payment Link:

Create a Kora account and log in.
Navigate to “Payment Link.”
Enter your details and customize your link with certain preferences.
Preview your link and activate it.
Share your Kora Payment Link on social media platforms and other messaging tools.
Start receiving payments.

Conclusion

We can not overemphasize the importance of having a sustainable payment strategy for online businesses to attract more customers who would complete purchases with them. That is why Kora introduced a payment link which merchants can easily share with their customers for transactions.

Kora Payment Link is easy and free to use, and you can get started by creating a Kora account now. [site]

BANKING

How Kora Improves Cross-Border Transactions For Businesses

Published

2 weeks ago

softchris4ol

How Kora Improves Cross-Border Transactions For Businesses

Cross-border transactions are increasingly becoming popular without the concern of waiting days or transfer fees. This is due to the emergence of a fintech company like Kora, which makes cross-border payments simple, cheaper, faster, and easily accessible for businesses: “How Kora Improves Cross-Border Transactions For Businesses.”

A BCC Research of January 2023 revealed that the global cross-border payments market is expected to grow from $176.5 billion in 2021 to over $238.9 billion by 2027. The vehicle for this growth is fintech disruptors like Kora, which offers a digital platform and innovative messaging and settlement layers to improve cross-border business transactions.

How Kora Improves Cross-Border Transactions for Businesses

Ways Kora Is Changing Cross-Border Transactions For Businesses

Improved Convenience

Kora enables you to make transactions fully on its platform, unlike the traditional method of visiting physical branches. This allows you to use the platform anytime and from anywhere without a glitch.

A simple user interface and streamlined onboarding characterize this platform to simplify cross-border transactions. It means you can use Kora to receive funds from your customers or transfer with its bulk payout, multicurrency payout, or mobile money options.

Speed And Efficiency

Kora enables instant or same-day cross-border transactions, which is in the converse of the traditional settlement layers that can take days. Therefore, businesses can complete their transactions in less than one hour on this platform. You do not experience any form of delay in sending or receiving funds on this platform, irrespective of the amount. This is due to its high scalability and optimization of Kora.

Lower Fees

This platform eliminates the meddlesome of third parties like banks and agents in the cross-border transfer chain. As such, it offers a relatively low transaction fee, which is often less than 1% of the transfer amount. This is a major perk of Kora compared to its contemporaries.

Enhanced Transparency

Kora offers an advanced tracking dashboard that provides real-time access to your funds and the estimated delivery timelines. This is because the platform has state-of-the-art blockchain technology that provides complete transparency in the tracking of your funds. It helps to reconcile your income with expenses.

Security And Compliance

Kora employs features like two-factor authentication (2FA) and other security measures to add extra security layers and protect user transactions and funds. This platform is in total adherence to global compliance standards to protect users’ funds and data.

Reduced Foreign Exchange (FX) Risk

Cross-border transactions often involve multiple banks and currencies whose operations result in significant foreign exchange fees and currency volatility that create discrepancies between transferred and received funds.

This is largely the case when businesses in a particular country receive payments from another country.

However, Kora reduces foreign exchange risks that are associated with cross-border transactions by routing funds efficiently at the best exchange rate. On the other hand, Kora users can avoid foreign exchange concerns by using the multicurrency account on the platform that allows them to receive payments in currencies other than their local currency.

Conclusion

Cross-border payment is important to businesses as it enables their growth in the global market. But as digital payments continue to gain traction, there is a need for businesses to know how to leverage the technology to boost sales.

One major platform you can use for your cross-border transactions with your customers is Kora. This is due to the simplicity and scalability it offers you.

You can also start making cross-border transactions seamlessly when you create a Kora account now. [site]