I have selected the Management by Objectives (MBO) theory of management because this relates the most to my business ideas and current working environment. The MBO approach uses many familiar processes that I am accustomed to using such as goal setting, employee participation, and feedback. Using all of these tools has helped to increase overall job performance and help to provide a more informed employee and management team. The performance of the management has to be the same goals as the business (Drucker, 2001). In most business there is some central problem and this theory helps to analyze the problem to result in short term then long term resolutions. In management the profit goals are analyzed from budgeted forecasted outcomes. MBO will help to develop new strategies to reach the forecasted goal (Ford, 1980). This approach has great open communication for management’s entire participant. Peter Drucker developed the concept of MBO and it has been used by management for more than two decades (Drucker, 1998). A major application for Management by Objectives is setting measurable goals that can be reached in a certain time frame. This helps management to be able to evaluate the talents of individuals and match them to the needs of the organization (Ford, 1980). Employees are set with established feedback times to be evaluated. During this time an employee’s development is discussed and any necessary adjustment to goals are established. This helps to keep all employees better informed and will create more job satisfaction (Drucker, 2001). Every Employee will have input in the goal setting process. This is very effective in building employee recognition. An employee that is involved in the goals that are set would be more exci... ... middle of paper ... ...d keeps it fresh on the mind for employees. Works Cited Drucker's development of the 'strategy-focused' organization. (2001). Corporate University Review, 9(1), 6. Retrieved from the Business Source Complete database Ford, R., McLaughlin, F., & Nixdorf, J. (1980). Ten questions about MBO. California Management Review, 23(2), 88–94. Retrieved from the Business Source Complete database Knowledge Management. Harvard Business School Press, 1998. pp. 1-19. Nadler, R.S. (1998) Teamwork is an Unnatural Act, PIHRA Scope, June, Vol.XLXI, No.6 Peter F. Drucker. “The Coming of the New Organization” in Harvard Business Review Quigley, P. (1993). Can management by objectives be compatible with quality? Industrial Engineering, 25(7), 14. Retrieved from the Business Source Complete database Weihrich, Heinz. "A New Approach to MBO." Management World. January 2003.
Ebert Ronald J and Griffin Ricky W. (2011). Operations Management and Quality (8th edition) Business Essentials.(pp.128-132), Boston [Mass];London: Pearson.
The success of the organization depends on how the leaders utilize their management and leadership skills in the organization. Mission, vision and core values of the organization are posted everywhere in the organization to remind every stakeholder about their accountability and responsibility in accordance to the corporate goals. This can’t be effective without successful leadership approach. Effective leader must know how, when and where to communicate the shared vision of the organization to its stakeholders. The goal is to align personal values with the corporate values to reach optimum level of satisfaction towards the work, and the company expectations to its stakeholders. Ineffective leaders are not capable of employing this. They are not capable of employing management by objective or the ability of the managers to align the objective of the all the units and departments of the organization into the organizational goals and values. MBO starts with setting organizational objectives, followed by cascading objectives down to employees-cascading objectives down to employees requires adoption of SMART approach to ensure that goals are attainable and accountable (Mindtools, 2014)
Wit, BD & Meyer, R 2010, Strategy: process, content, context : an international perspective, Cengage Learning EMEA, London.
“A performance objective is a specific end result that contributes to the success of the unit or organization and that an employee is expected to accomplish or produce. It provide focus to an employee’s work to ensure that his or her actions are directed towards achieving important mission-related outcomes.” (Anon, 2009)
Besides that, OB can serve managers, leaders and customers’ purposes. To begin with managers who have to expand their information about the attitude and group’s behavior to improve the organization work environment and to create a business plan to have a successful organization. First of all, managers can build a better workplace by recognizing the challenges that face any organizations because of some strategies that used in business environment. For example, one of the challenges are that having a cultural diversity in organization, so managers can build the organization with different cultures which help to encourage employee to do their job well and communicate with others in appropriate way. Secondly, managers can measure the effectiveness and efficiency; also, they can identify the strength and weakness of the organization. According to national institutes of health, Organizational effectiveness is about each individual doing everything they know how to do and doing it well (NIH, 2004). Moreover, OB offers ways that provide ways in how managers can trust their employees’ potential and using a reward system to enhance employees’ performance. OB is helping the managers on providing some strategies such as indentifying problems by searching and gathering information to have an accurate decision.
This would include new ideas as previous goals are accomplished. The subset goals will be developed from the company vision and goals. This would include bi-weekly staff meetings with each department to determine best practices and to acknowledge those who excelled during the process. The topics of discussions would also include the impact and financial progress of the operations. This would allow staff members to envision how positive decisions could help sustain the company as a
Thompson, A., Peteraf, M., Gamble, J., & Strickland, III. (2012). Crafting and executing strategy: The quest for competitive advantage (18th ed., pp. C243-C256). New York, NY: McGraw-Hill Irwin.
Rodgers, Robert, and John E. Hunter. "Impact of Management by Objectives on Organizational Productivity." Journal of Applied Psychology 76.2 (1991): 322-36. Print.
Robbins, Stephen P., David A. DeCenzo, and Mary K. Coulter. Fundamentals of Management: Essential Concepts and Applications. 7th ed. Upper Saddle River, NJ:
[Online]. Available: http://www.referenceforbusiness.com/encyclopedia/Thir-Val/Total-Quality-Management-TQM.html. [11] S. K. Chavan, "Benefits and Problems in TQM," 3 November 2010. [Online]. Available: http://www.managementparadise.com/forums/materials-management/207553-benefits-problems-tqm.html.
«The emphasis (of MBO) is on trying to predict and influence the future rather than on responding and reacting by the seat of the pants. It is also a ‘results-oriented’ philosophy of management, one of which emphasizes accomplishments and results. The focus is generally on change and on improving both individual and organizational effectiveness.»
To make corporate strategies, goals an aims relevant to learning at individual level. Communicate Openly, Gratitude and Appreciation, Consistent Feedback & Follow ups on employee relations. It will help in retention of employees. Turnover rate will decrease and employee will feel motivated within the workplace. Employee - Employer relation will improve.
Not only does these assumptions are bases of society, but also people’s preferred modes of conducts. In HRM, managers in multinational workplaces need to be someone who is adaptive to different preferences at work. Specifically, expatriate, because he/she has more possibilities for exposure to cultural differences. The reason is, many firms send expatriate to overseas subsidiaries for flows of information and administration. Also, headquarters can achieve control through both socialization and formal report provided by the expatriate (Schneider, 1988). Every national expatriate has his or her own way of doing things. For example, in USA, managers would adopt a more formal and impersonal
Setting and achieving goals is a task in itself for individuals and companies alike. Without goals what are we to know what we are working towards? In a company setting, goals are a one-directional approach to keeping the company moving forward and preparing a clear concise vision for any and all employees that work for the company. Companies that share goals with their employees tend to see a lower turnover rate because the employees are buying in to the job and goal at hand. The company works as one when goals are presented and executed. The top three challenges faced by HR organizations today are turnover, employee engagement, and succession planning. (Carter, 2015)
Performance Management is a process of evaluating the organisation and employee achievement towards a common goal, it can also ensure the business continually strives to improve their most valuable asset ‘their employees’. Performance management can continually drive business improvement by identifying and communicating performance goals and expectations. Employees are aware of what is expected of them and how they will achieve them. Linking employee goals with business goals means the organisation will continually improve the employees and organisational performance as a whole, the organisation can drive their performance ‘hand in hand’.