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Friday, 26 June 2015


This is the second part of the Characteristics of Management by Objectives, and the points are as follows:-

Organizational Structure:
As per the concept of Management by Objectives an organizational arrangement gets developed.
This arrangement is called as organization structures, which is developed in such a way that the department head, manager is independent of taking all decisions in the particular department so that execution of work and objectives are achieved for the fulfillment of department as well as organizational goals.    

Performance Evaluation:
An important characteristics of Management by Objectives, is to cheek and analyze the actual performance with respect to pre determined plan within a standard time frame. Any deviation from the pre determined plan is corrected, to accomplish the departmental and organizational goals.   

Under the concept of Management by Objectives overall importance is given for adequate and effective Training, which matches and suits the jobs and duties, has to be organized and given to the different levels of management, worker or employees for the efficient time bound completion of departmental and organizational goals.

This approach of Management by Objectives presents valuable acknowledgment towards the concept of Motivation. In an organization monetary and fringe benefits are given to different levels of management, subordinates, workers or employees so that whole hearted performance and mutual cooperation may be achieved for the accomplishment of departmental and organizational goals.

The concept of Management by Objectives also encourages different levels of managers to check and recheck the actual performance with respect to pre determined plan and thereby inform the deviating department, subordinates, workers or employees to take the corrective measures as per the suggestion by the specialist, for the fulfillment of objectives. This often helps in improving the efficiency & performance of individuals.

Hence, we may say that due to the above given characteristics the concept of “Management by Objectives” has earned and established its importance in the Management field.


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