Производство и промышленные технологии

It is also vital in Drucker’s view that the individual knows what his her manager expects of him her. A special feature of MBO is that the subordinate participates with his her manager in developing objectives. After these have been worked out his her performance in relation to the goals can be assessed. MBO therefore focuses on results.



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Management by Objectives (MBO) is a system which was first described by the American Peter Drucker, in 1954, in his book The Practice of Management. Since then, MBO has attracted enormous interest from the business world, and its principles have been applied in many of the world's largest companies.

In his book, Peter Drucker emphasized that an organization and its staff must have clear goals Each individual must understand the goals of the enterprise he/she works for, and must make a contribution to them. It is also vital, in Drucker's view, that the individual knows what his/her manager expects of him/her. He/She must know what sort of results he/she is expected to achieve

If an organization uses the Management by Objectives approach, it must pay careful attention to planning. This is because each individual has clearly defined objectives. And these will contribute to the overall objectives of the enterprise. With MBO, individual and organization objectives are linked. A special feature of MBO is that the subordinate participates with his/her manager in developing objectives. After these have been worked out, his/her performance, in relation to the goals, can be assessed. MBO, therefore, focuses on results. The subordinate's performance is judged in terms of how well or badly he/she has achieved his/her goals.

Various kinds of MBO system are used in organizations. Here is an example of how a programmer might work in a company.

The programmer consists of several stages. First, the subordinate's job is defined. Next, his/her current performance is evaluated. Then, new objectives are developed by the subordinate and his/her manager. Finally, the programmer is put into action. Later, there are periodic reviews of the person's performance, and his/her progress is checked.

Let us consider these phases in more detail. At the first stage, the subordinate and his/her manager define the job separately. They also rank the task in order of importance. Both parties then meet and discuss the statements they have made in writing. It is quite possible that they will not agree about certain aspects of the job. They discuss their differences of opinion. In the end, they both have a clearer idea of what the job involves.

At stage two, the subordinate and his/her manager examine each task. They try to decide how well or badly it is being performed. Again, they do this evaluation separately. They meet and discuss their assessments. All being well, the manager will have the chance to praise the subordinate for some of his/her work. On the other hand, the subordinate or the manager-or even both parties-may point out areas where there are problems-tasks which are not performed properly.


Developing objectives comes next. The subordinate and his/her manager try to develop goals which are challenging but realistic. The manager may set performance standards which can be measured or quantified. But this is not essential. The objectives probably spell out results that must be achieved. There will be dates by which the subordinate must achieve his/her goals.

In the table below, Figure 1, you can see examples of objectives for an MBO programmer. Figure 1  



Sales representative

Increase sales of video-recorders in the Chicago area by 5%, by 1 June. Obtain five new accounts by 1 January. Send sales reports in on time.

Chief Accountant

Reduce bad debts from 8% to 4% of sales turnover by 1 January. Introduce new computer system in Accounts Department by 1 January.

Marketing Manager

Complete test marketing of PX hi-fi units by 1 January. Increase market share of home computers by 3% by 1 January.


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