Question

As related to financing, financial control, and budgeting matters, what exactly is outcome-based management and how is it similar to and different from other approaches to management with which you may be familiar?

Answer 1

Outcome based management are related to result based Management which are focusing upon determining whether you achieved the particular outcome out of certain project or not, so it is mainly result based approach and not a process based approach so it is highly focused at achievement of the result and comparing of the actual with the standard result in order to find out the derivation.

It is similar to other types of management as it is always intended to achieve the desired objective of the company and maximize the interest of the shareholders but it is just a limited approach which is focused upon achieving of the result rather than determining the whole process so it is a very narrow approach and it can often lead to misappropriation of different targets and over estimation of different targets which are not achievable in real life so outcome based management can be really illogical at times if the results are not clearly predefined.