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Management by Objectives by Peter Drucker

MBO (Management by objectives) is an organized and well systemized direction to the management that helps to concentrate on the goals to be achieved and to utilize the limited available resources in the best possible way to attain desired results. The prime objective of the MBO is to enhance the organizational management method and in order to achieve organizational perfection, alignment of goals and the subsidiary objectives is necessary within the organization. In an ideal case, employees possess input for the identification of the objectives and also dead line for work completion. The MBO inculcates feedback and also, tracking in order to attain the objectives. Peter Drucker, was the first to outline MBO (Management by Objectives) in his own book in 1954 named ‘The Practice of Management.’ Also, Drucker himself was responsible to decrement the fame of the organization management method in late 90s, saying that the organization performance method is just a tool and not the best remedy for the inefficient management. He also exclaimed that Management by Objectives is only beneficial when one is familiar with the objectives and in 90 percent case, the objectives are not known.[ad#ad-4]

According to the theory of Drucker, the managers ought to ignore the activity trap as their intense involvement in the daily chores, make them forget the fundamental objectives. Therefore, all the managers except few brilliant managers should indulge in strategic planning process so as to intensify the implementation of the strategy and also, managers should enforce selection of performance criteria which is deliberately designed to keep the organization on the appropriate path.

Management by objective managers are meant to concentrate on consequences than the process or activity involved in obtaining it. MBO aims at setting own objectives and later subdividing it into more particular tasks to obtain meaningful desired results.

Written by: Matt

We also suggest this relevant article if you have time: Clarkson Principles


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