Enhancing employee engagement through strategic management tools – A quantitative analysis of utilizing MBO and OKRs in a Finnish smelting company
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Journal Title
Journal ISSN
Volume Title
School of Business |
Master's thesis
Author
Date
2024
Department
Major/Subject
Mcode
Degree programme
mib
Language
en
Pages
51+18
Series
Abstract
This thesis examines how goal-setting management tools, specifically Management by Objectives (MBO) and Objectives and Key Results (OKRs), affect employee engagement in a Finnish metal refining company. The goal is to understand how these tools help align company objectives with employee goals to improve motivation and performance. Using a survey, we gathered data from white-collar and upper whitecollar employees to assess their experiences with MBO and the potential of OKRs. The survey looked at how these tools influence employee engagement, satisfaction and productivity and strategic alignment. The results show that MBO positively impacts employee engagement, mainly by improving employee satisfaction and productivity. However, while OKRs are useful for setting clear and challenging goals, they did not have a direct effect on engagement. Strategic alignment also plays a crucial role in enhancing engagement, but we did not find a significant interaction between MBO/OKRs and strategic alignment. Overall, study suggests that the implementation of MBO and some methods from OKRs integrated to the currently used management tool, would enhance employee engagement directly and indirectly mediating through improved employee satisfaction and productivity. This study enhances our understanding of how strategic management tools can improve employee engagement. It suggests that clear and aligned goal-setting can motivate employees and enhance their performance. The findings offer practical suggestions for improving management practices to achieve better employee and company outcomes. Future research should include more industries and longer studies to confirm these findings and explore other factors that might influence engagement. This thesis aims to provide insights into improving employee engagement in the Finnish metal industry by using strategic management tools, helping organizations align goals and enhance performance through better employee motivation and satisfaction.Description
Thesis advisor
van der Giessen, MarkAnttila, Miia
Keywords
employee engagement, management by objectives, MBO, objectives and key results, OKRs, target-oriented management tools
