Peter Drucker 1
Peter F. Drucker developed the “Management by Objectives Theory”. This theory presents an objective that needs to be accomplished. A manager will receive an objective and break it down into achievable goals. The Manager will then delegate employees on what tasks should be done. Once all tasks are complete the project will fit together like pieces of a puzzle. This style of management is good for the employee in the fact that they are told what to do, but get to be creative and accomplish the task in their own manner.
Submitted June 26, 2009
Introduction There is a time when every entrepreneur starts at the bottom of the food chain. You receive orders that came from your store manager who received them from their regional manager and so on and so forth. Peter Drucker has theorized these management techniques and he called his theory “Management by Objectives”. Drucker’s theory has been in practice by countless companies since 1954. The Management by Objectives theory was designed to synchronize the employee’s goals with the company’s goals. Having everyone on the same page makes the companies stay on track and run smoothly (Management by Objectives, 2009, ¶ 2). Management by Objectives theory shows how managers can use their resources and achieve their goals that are present at work and to achieve the best outcome.
Management by Objectives The Management by Objectives theory is used by breaking every task down into achievable goals. Once the goals are broken down from the company director and managers, goals are organized in a way so that managers can focus on their assigned task. This method of management allows managers to use their employees and resources they have to achieve their goals at hand to their maximum potential (Kotelnikov, 2001, ¶ 1). After the goals are broken down and expectations are set, managers are then told what the goals and expectations are. Managers will then delegate to the employees what goals need to be accomplished. The
Submitted June 26, 2009
Introduction There is a time when every entrepreneur starts at the bottom of the food chain. You receive orders that came from your store manager who received them from their regional manager and so on and so forth. Peter Drucker has theorized these management techniques and he called his theory “Management by Objectives”. Drucker’s theory has been in practice by countless companies since 1954. The Management by Objectives theory was designed to synchronize the employee’s goals with the company’s goals. Having everyone on the same page makes the companies stay on track and run smoothly (Management by Objectives, 2009, ¶ 2). Management by Objectives theory shows how managers can use their resources and achieve their goals that are present at work and to achieve the best outcome.
Management by Objectives The Management by Objectives theory is used by breaking every task down into achievable goals. Once the goals are broken down from the company director and managers, goals are organized in a way so that managers can focus on their assigned task. This method of management allows managers to use their employees and resources they have to achieve their goals at hand to their maximum potential (Kotelnikov, 2001, ¶ 1). After the goals are broken down and expectations are set, managers are then told what the goals and expectations are. Managers will then delegate to the employees what goals need to be accomplished. The
References: Bogue,R.L.,(2005). Use S.M.A.R.T. goals to launch management by objectives plan. Retrieved June 17, 2009, from http://articles.techrepublic.com.com/5100- 10878_11-5683094.html Drucker, P. F., (1964). Managing for Results. New York: HarperCollins Publishers, Inc. Kotelnikov, V.,(2001). Management by Objectives (MBO). Retrieved June 17, 2009, from http://www.1000ventures.com/business_guide/mgmt_mbo_main.html Management by Objectives (MBO). (2009). Retrieved June 17, 2009, from http://www.mindtools.com/pages/article/newTMM_94.htm Topping, P. A., (2002). Managerial Leadership. New York: McGraw-Hill