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Friday, 19 June 2015

PRINCIPLES OF MANAGEMENT: MANAGEMENT BY OBJECTIVES



Meaning
Management by Objectives is not a management technique but a total Goal specific management. We may say that it follows the practical aspects of management. This concept has been developed on the human factors of cooperation, understanding and coordination.


The concept of Management by Objectives was brought into by Alfred Sloan in the early fifties (1950). But the complete scientific studies & hypothesis was developed by Peter F. Drucker.  

The concept of Management by Objectives revolves round the basic objective goal of business unit which is being managed. The whole idea is to establish the basic objective of the unit and then manage the whole according to the pre decided goal.

The middle & lower level of management decide the overall goal and try to achieve with mutual working & cooperation, keeping an eye on the advancement achieved. Here main objects are defined, establishment of standards are made, result analyzed between actual and pre determined target, if needs arises then corrective measures are taken to reach the ultimate organizational goal.

It can be further said that Management by Objectives is a system where senior & junior management people determine the time frame objects of business units as a whole, which literally differentiates the work, responsibility & accountability of different levels of management. This helps the top levels of management to analyze the performance of different department and their respective managers, workers or employees from time to time as well as helps them to accomplish the organizational goal. 

George S. Odiorne has rightly said that, “in brief the system of Management by Objectives can be described as the process whereby the superior and subordinate managers of an organization jointly define its common goals, define the major areas of responsibility in terms of result expected by them and use these measures as guide for operating the unity & assigning contribution of each of its members.”

This is a dynamic concept which is often referred by different management experts by different titles as given below:-

Ø  Management by Objectives,
Ø  Management by Goals,
Ø  Management by Mission,
Ø  Management by Purpose, and
Ø  Management by Result.

So, it is understood now that Management by Objectives is an exceptional approach where objects of a particular business unit get focused attention towards achieving the goal. 

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