The Management by Objectives Approach

This essay will draw upon the literature to look at the history, contents, the strengths and weaknesses, and also the successes and failures of MBO.

"MBO was 1 on the popular buzzwords that sprang up from the early 1970s to provide a product towards the unfavorable relationship that existed between management and employees in several U.S. firms. Based on practical merchandise and real-world favorite sense, MBO is merely a procedure for facilitating communication between management and employees on business objectives, setting person and corporate goals, establishing an effective reward and motivation system, and developing a exciting feedback monitoring system. Whilst it's not a guaranteed panacea for internal difficulties, it's 1 technique for bringing management and subordinates closer together.

The origins of this process to resolving tensions between workers and supervisors can also be traced towards the 1920s, after many executives at U.S. companies just like General Motors, National Dollars Register and IBM introduced goal-based programs (Marlow and Schilhavy 1991, 29). In 1954, Peter Drucker presented the very first formal and coherent description of the thought and strategy of MBO in his book, The Course of action of Management. Because then, MBO has been proposed being a product or service to a host of management problems.

Romani (1997, 7) said that as stands out as the situation with most seemingly easy concepts, there have been cleavages among the ways that Drucker conceived MBO, the methods exactly where others have promulgated it, and also the methods it is practiced. Mainly because this is the case, some businesses that have employed MBO have turned away from it looking for other techniques for setting goals and objectives and determining as soon as accomplishment in meeting goals and objectives has occurred.

A 1974 survey found, for example, that practically 40 percent of Fortune 500 businesses had an MBO program; by 1980, some 75 percent of large industrial companies surveyed used MBO. Because 1954, volumes of material on MBO have been published in each academic and professional journals. Over time, new management theories and strategies have emerged and MBO has lost some of its luster and support; nevertheless. MBO continues to command attention in between managers and scholars alike.

Under the concept, Drucker wished managers being accountable for results, not activities. The range of meetings they attended, reports generated and other measures do not count. What is significant is how those people activities pay off in terms of contributing to the objectives on the organization. You will discover no smoke and mirrors on the concept; it's not meant to give managers a sense of participation - actual or phony. By definition, managers have responsibility. Thus, managers know the purpose of MBO, as well as the goals of the unit of which they are a part (e.g., sales units, etc.) mainly because MBO encompasses the idea of participation in individual goal-setting. Managers also have manage more than the way the goals are achieved. A unique feature of MBO is that the control is self control. With objectives becoming the operative word, not management, self-control signifies enhanced freedom to pick and to act.

 

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!