Management by Objectives (MBO) as a strategic approach to enhancing employee productivity in public institutions in the Sultanate of Oman

Abstract

This study aims to examine Management by Objectives (MBO) as a strategic approach to enhancing employee productivity in public institutions in the Sultanate of Oman The Office of the Governor of Dhofar, Dhofar Municipality, and Diwan Royal Court are the three primary organizations that are the subject of this study. The study is to investigate how employee productivity is impacted by three important MBO components: goal specificity and clarity, participatory decision-making, and performance feedback and review. 351 employees were given a standardized questionnaire as part of a quantitative descriptive-analytical approach. To assess the study hypotheses, correlation and regression analysis were applied to the data using SPSS. The results showed that employee productivity is positively impacted by all MBO characteristics in a statistically meaningful way. Following goal clarification and performance evaluation, participatory decision-making shown the greatest influence. The findings verify that MBO increases staff productivity by enhancing performance monitoring systems, increasing employee involvement, and improving goal alignment. The study's theoretical foundations are Goal-Setting Theory and Agency Theory, which describe how higher performance results result from management and staff alignment and explicit objectives. Finally, in order to increase efficiency and production in Omani public institutions, the study emphasizes the significance of implementing and improving MBO techniques. It offers managers and legislators useful suggestions for enhancing performance management systems in accordance with Oman Vision 2040.