Management by Objectives

Topics: Management, Strategic management, Peter Drucker Pages: 1 (371 words) Published: November 7, 2010
Management by Objectives
MBO is a systematic approach whereby management is allowed to focus on achievable goals and to achieve the best possible results from available resources. The aim of MBO is to link the departmental objectives throughout the organization with the overall goals that management has set in order to increase organizational performance . MBO includes constant monitoring and feedback in the process to reach objectives. Peter Drucker in 1954 in The Practice of Management was first to outline mbo. it gives subordinates a certain freedome to use initiative to avhieve the goals by not dictating a detailed road map for implementation. While the level of initiative allowed in each organization is different, the public sector has definite signs of influence by his theory. Each public sector organization has a series of goals that are often displayed prominately on the walls. However the high level of subordinate input as is ideally required by his theory is lacking and the result is that a lot of subordinate workers do not wholeheartedly buy into the common goals of the company. Tho this is true of many organizations, the public sector and in particular the education ministry is positively and significantly influenced by mbo. Al the objectives listed by drucker are implemented and used successfully by the education system. In fact Jamaican tearchers are even required to prepare an action plan which is used for appraising and evaluation growth. Robert Heller and Tim Hindle agree that Drucker’ s MBO requires is a clear understanding and acceptance of the organizations goal. This is not in itself a problem, but as stated in a previous paragraph, public sector organizations in the caribbean have been cursed with the tendency to exclude the input of subordinats with beauracratic systems. Even though formal MBO programs have been out of favor since the late 1980s and early 1990s, linking employee goals to company-wide goals is a powerful idea that benefits...
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