Peter Drucker 1

Topics: Management, Peter Drucker, Management by objectives Pages: 6 (2045 words) Published: October 3, 2010
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

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 Management by Objectives theory is set up this way where everyone from the top to the bottom of the business is on the same page and knows what goals are expected to be achieved (Kotelnikov, 2001, ¶ 2). In the Management by Objectives theory there is a time line that is set in place to show when goals are expected to be met by. Employees get input from their managers that will set them on the right path. While all these steps are taking place, progress is tracked and feedback is given. This part of Management by Objectives is done so that the managers can tweak as well as peak the performance to get the best outcome (Kotelnikov, 2001, ¶ 2).

Many times managers will forget the goals they are trying to reach and will be working astray. When this happens there will be very little to no progress accomplished, this is referred to as an activity trap (Bogue, 2009, ¶ 9). To prevent this, all managers should give input while planning out the process that will be put into action. This will allow managers to better understand the direction they will need to move in order to manage their employees. This organization style keeps everyone working in the right direction as well as enhances performance (Kotelnikov, 2001, ¶ 4).

In the Management by Objectives theory managers should not focus on what activities are being carried out, but center their attention more towards the results that are produced by their team of employees. The manager’s main role is to give the main task to their employee, and allow them to set up his or her own goals to achieving the main goal. This will allow the employee be creative and let them feel like they play an important role in achieving the teams overall success (Kotelnikov, 2001, ¶ 5).

The Management by Objective’s main purpose is to ensure that the goals are clear and understood from directors all the way down to the employees. Every person should be attentive of the responsibilities and roles that they are carrying out. Vadim...

References: Bogue,R.L.,(2005). Use S.M.A.R.T. goals to launch management by objectives plan. Retrieved June 17, 2009, from 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
Management by Objectives (MBO). (2009). Retrieved June 17, 2009, from
Topping, P. A., (2002). Managerial Leadership. New York: McGraw-Hill
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