Management by Objectives (MBO) Development Model and Knowledge Quality in Efforts to Improve Human Resource Performance at Muhammadiyah Lazis (Lazismu) Central Java

Abstract

Abstract. A finding shows that ambidexterity causally triggers the activity of connecting knowledge sources inside and outside the organization, thereby increasing the quality of content circulating within the organization that substantively enriches the dimensions of accuracy, completeness, and relevance of knowledge that are the core definition of knowledge quality in knowledge management literature, especially when organizations rely on connectivity and social networks to balance exploration and exploitation. This research is an explanatory research. This design was chosen to test the causal relationship between latent variables that have been formulated in the framework of thought, namely Management by Objectives (MBO) and Ambidexterity as exogenous variables, Knowledge Quality as a mediating variable, and HR Performance as an endogenous variable. Management by Objectives does not have a significant effect on Human Resource Performance at Lazismu throughout Central Java. This is indicated by the path coefficient value of 0.053, t-statistics of 0.316, and p-value of 0.752. This finding indicates that the implementation of good Management by Objectives has not been able to directly improve human resource performance in the Lazismu environment. In other words, clarity of objectives, participation in goal setting, linking individual goals to organizational objectives, assessment standards, and objective evaluation have not directly led to increased productivity, work quality, timeliness, and achievement of zakat, infaq, alms, and social and religious fund collection targets at Lazismu Central Java. Management by Objectives has a positive and significant effect on Knowledge Quality at Lazismu throughout Central Java. This is evidenced by a path coefficient of 0.385, a t-statistic of 2.448, and a p-value of 0.015.