The Philosophy Of Management: Management By Objectives

2002 Words9 Pages
1. Introduction “Management by Objectives” (MBO) as a philosophy of management was first introduced by Peter F. Drucker in his book “The Practice of Management” in 1954. The philosophy of management by objectives comprises three building blocks: formulation of objectives, process of execution, and mechanism of performance measurement and feedback. MBO is a process in which members of complex organizations, working in conjunction with one another, identify common goals and coordinate their efforts toward achieving them. Management by objectives, however, was not adopted in its entirety in the first place but conducted in part, especially the very aspect of performance appraisal, even though it has been popularized and broadly practiced both…show more content…
The activities of an organization are determined by its sets of objectives. Once organizational units and individuals determined their objectives, it is possible to work out in a required performance to achieving and accomplishing the same. Methods of achieving objectives, resources required, timing, interactions with others, control, and evaluation must have continuing attention. Objectives may or may not require change. Quite naturally, objectives may originate at any point in the organization structure and can be derived from the general purposes of the organization, and consistent with its philosophy, policies, and plans. It is difficult to consider development of objectives for a manager which would shield each and every area of responsibility. Even if the structure of most jobs is too complex, once objectives are set, they should comprise the major description of the job, and their achievement up on the total job requirements should be…show more content…
The possible problem causes can be grouped as: 1. Procedures and Structure 2. Others with whom an individual must work 3. The Person Himself 2.2. SETTING GOAL There is a strong relationship between the degree of subordinate’s acceptance of the objectives approach and his observation of its support and strengthening from top management. The organizational support is important because: 1. Top management is an important reference group for lower level managers. They identify what top management performing and act similarly. They follow the particular method which is used by the top management. 2. Communication of organizations general objective to lower level is important. The boss must communicate, what is expected with his subordinates, and he is supposed to act with them in order to achieve this goal. Entire objectives of the organization must be written down, but the degree of precision cannot be specified because of organizational policy and procedure that determine the superior-subordinate agreement. By MBO process, this problem is fully resolved. The MBO approach is essentially built into the job of managing and is related to organizational process and
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