Management By Objectives (MBO) Essay

Management By Objectives (MBO) Essay

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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...

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...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.

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