PRINCIPLES OF MANAGEMENT: PROCESS OF MANAGEMENT BY OBJECTIVES

Management by Objectives is a systematic practice very useful in achievement of   departmental and organizational goals. A number of processes or small steps are implemented during the Process of Management by Objectives. Few are illustrated in brief as follows:-

Determination of Objectives of an Enterprise:

The most important step is focusing in determining the objectives of a business or industrial unit. This fundamental process is mutually determined by different levels of managers and subordinates, keeping an eye on long term, short term and day to day achievement of target objectives or goals. Limitations and advantages of the organization are discussed and accordingly steps are advised by top most & top management. This is a time consuming process because it needs fact based systematic & careful analysis of data’s and prevailing conditions.    

Determination of the Targets of Managers:

This step of process of Management by Objectives involves giving specified targets to different managers. Each & Every Manager of the business or industrial unit synchronizes in accordance with top management to set specific qualitative or quantitative target to be achieved in the recommended period. This target depends on the objectives of the organization, while deciding the individual targets, traits & requirements of the department is also given due consideration, so that if needs be it may be revised. The whole picture regarding performance of individual manager becomes very clear. 

Determination of Departmental Targets:

The predetermined goals of a business or industrial unit are further broken down as per the departments available.  All activities have to be in accordance with the main organizational goals so that achievement is within the stipulated time frame. Here the main involvement is of the department heads, subordinates and workers or employees as now it is the responsibility of all to get synchronized, integrated, and motivated to achieve the required.

Application of Control System:

The determination of objectives at the management levels & departments now emphasizes on plan of action for the achievement of given targets in accordance with organizational goal. An elaborate work plan prepared where individual and group responsibility and accountability is defined regarding work performance and facilities as well as infrastructure & materials needed for achieving the combined objectives. The whole activity is within specified time period. Systematic & specific controls are initiated to achieve the predefined target.

Evaluation of Results & Review of Objectives or Targets and Control:

The work & action plan for achievements of targets help in evaluating the performance. Once the pre defined period is complete, the actual data’s regarding performance of different individuals, departments and managers are collected and analyzed with respect to pre determined figures. The actual facts and outcomes are systematically evaluated, and understand the qualitative and quantitative achievements of the initial predetermined objectives. Basically all this is done to see is the performance is in accordance with planned projection. This controls the deviation from the pre determined plan & policy and also gives chance to correct any irregularities in departments and individuals at the initiating stage of work implementation.