clear goals
regardless of the specific job
to set objectives
to achieve objectives
subordinates
to develop objectives
to put the plan into action
units .
day-to-day direction
supervision of employers
promotion
to measure the performance of their staff ()
to consider the needs of the future
public authorities ()
to have a say in -
to assess the individuals performance
prejudices
Management is composed of a team of managers who are in charge of the organization at all levels. Their duty is to make sure that company objectives are met and to see that the business operates efficiently.
Management by objectives (MBO) is a system which was first described by Peter Drucker in 1954. Since then, MBO has attracted enormous interest from the business world, and its principles have been applied in many of the worlds largest companies.
P.Drucker emphasized that an organization and its staff must have clear goals. Each individual must understand the goals of the enterprise he/she works for, and must make contribution to them. It is also vital that the individual knows what his/her manager expects of her. An individual must know what sort of results he/she is expected of.
Various kinds of MBO are used in organizations. But regardless of the specific job, most managers perform four basic functions. These management functions are planning, organizing, directing, and controlling.
Planning involves setting objectives and deciding how the organization can achieve them. This, in its turn, involves developing strategies, plans and precise tactics. If an organization uses MBO approach, it must pay careful attention to planning. A special feature of MBO is that the subordinates participate with the manager in developing objectives. Planning is listed as the first management function because the others depend on it.
Organizing, the second management function, is the process of putting the plan into action. Managers analyze and classify the activities of the organization and the relations among them. This involves allocating resources, especially human resources, so that the overall objectives can be attained. Managers divide the work into manageable activities and then into individual jobs. They select people to manage these units and perform the jobs.
Third is the day-to-day direction and supervision of employees. Managers have to communicate objectives to the people responsible for attaining them. In directing, managers guide, teach, and motivate workers so that they can reach their potential abilities and at the same time achieve the company goals that were established in the planning process. In this phase they make decisions about pay and promotion.
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In the last management function, controlling, managers have to measure the performance of their staff, to see whether the objectives set for the organization as a whole and for each individual member of it are being achieved. If major problems still exist and goals are not being achieved, then it is necessary to make changes in the companys organizational or managerial structure.
Obviously, objectives occasionally have to be modified or changed. It is generally the job of a company's top managers to consider the needs of the future, and to take responsibility for innovation, without which any organization can only expect a limited life. Top managers also have to manage a business's relations with customers, suppliers, distributors, bankers, investors, public authorities, and so on, as well as deal with any major crises which arise.
There are many benefits of MBO. The system helps the subordinates to see clearly their role in the organization. They have a say in how their job is performed, and what goals should be. Workers feel more responsible and motivated. MBO is a good technique for assessing the individuals performance. People are judged on results, rather than on the personal feelings and prejudices of the managers.
