MANAGEMENT BY OBJECTIVES AS TOOL FOR GREATER PRODUCTIVITY AND DEVELOPMENT
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MANAGEMENT BY OBJECTIVES AS TOOL FOR GREATER PRODUCTIVITY AND DEVELOPMENT
Chapter one
INTRODUCTION
Background for the study
Management requires a variety of instruments to efficiently administrate the day-to-day operations of the firm. Management by objectives is one of these tools.
It is a managerial strategy for achieving better results in which superior and subordinate managers in an organisation identify important areas of responsibility in which they would collaborate. Set some standards for good or unsatisfactory performance and compare results against those standards (Derek 2005:156).
Management by objectives is also known as objective-based management. However, several individuals have long emphasised management by objectives, which refers to a structured management strategy of creating goals for any organisational unit.
Odiorne (1981:1) defines MBO as a management system in which the superior and subordinate jointly identify objectives, define individual major areas of responsibility in terms of expected results, and use these objectives and expected results as guides for operating the unit and assessing each member’s contribution.
Furthermore, Odiorne emphasises that management by objectives is a “system of management,” or an overall framework used to lead the organisational unit and establish its path. He went on to say that “the superior and subordinate jointly identify objectives”.
In other words, it is a participative management approach that necessitates dedication and cooperation. The definition is concerned with determining the intended “results”.
Thus, management by objectives focuses on the organization’s production while evaluating people based on their contribution to that outcome.
Management by objectives is an approach in which management establishes precise goals for employees to achieve within a set time frame. Management by objectives is a dynamic method that aims to connect the company’s need to clarify and accomplish profit and growth goals with the managers’ need to contribute and improve themselves. It is a difficult and rewarding style of corporate management.
Management by objectives can be implemented in any size organisation as long as the procedures are understood and managers are patient in allowing the system to settle in initially. Management by objectives is a highly effective planning, management, and development technique.
Koontz and O’Donnell (1968: 485) defined management by objectives as a system or method of management in which an organization’s superior and subordinate managers agree on a broad goal
translate that goal into a chain of specific short-term goals, define each individual’s major areas of responsibility in terms of expected results, and continually review the accomplishment as the sole basis for assessing and rewarding them.
Management by objectives allows employees to engage in decision-making within specific constraints. It is assumed that the employees have been appropriately picked and trained, and that the employee is aware that they will be responsible for attaining the required results in the organisation.
Organisations are everywhere. According to Mullins (2005: 256), organisations are created by people to help them overcome personal limits and achieve their goals. Hence, organization becomes a means of survival for the people and exerts a major everyday influence on the life of the people and the way they live.
The existence of capable men and women with the correct technique to combine the organization’s resources (man, machine, materials, and money) to fulfil the organization’s goals is the most important factor in its survival.
It is worth noting that Nigerian company management lacks sufficient techniques to ensure successful management. Some of these tools are not used, and those that are used are not used appropriately.
Management by objectives is not only a managerial approach for achieving well-coordinated managerial goals, but it is also a widely used management technique that pervades all human activities, including business, education, government, health care, and non-profit organisations.
The majority of management strategies, systems, and tools are poorly understood, resulting in organisational losses and damages. Furthermore, it is the incorrect use of methodologies and the refusal of top management to employ the appropriate tool to solve management problems.
The researcher seeks to investigate the prospects and challenges of management by objectives as a tool for organisational success in Nigeria.
Statement of the Problem
It is important to note that Nigerian company management lacks the necessary techniques to ensure effective management. Some of these tools are not employed, and when they are, they are not used effectively, such as management by objectives.
Management by objectives is not only a managerial approach for achieving well-coordinated management performance, but it is also a popular management technique that applies to or pervades all human activities, including business, education, government, health care, and non-profit organisations.
Unfortunately, many organisations have yet to adopt this strategy for eliciting employee commitment and support. Those that do frequently pay lip respect to the MBO technique. As a result, workers are excluded from standard/goal setting activities involving them. Control and goal achievement suffer in such situations.
The study’s objectives
The study’s overarching goal is to identify the opportunities and challenges of management by objectives as a tool for organisational performance in Nigeria.
The study’s particular aims are:
To identify difficulties influencing management using objectives as an instrument for organisational performance.
Determine the extent of participation of both management and employees in establishing organisational goals.
To examine whether staff are given adequate authority and responsibility for meeting the objectives.
Research Question
The following research questions have been developed to further the study’s research purpose.
What are the drawbacks to using management by objectives as a tool for improving organisational performance?
To what extent do managers and employees collaborate in determining organisational goals?
To what extent are employees given the necessary authority and duties for efficient management by objectives?
Hypotheses for research
The following hypotheses will lead the research:
Ho: Managers and employees do not participate in establishing organisational goals to improve performance.
H1: Managers and staff collaborate to develop organisational goals that will improve performance.
Ho: Non-commitment of top managers is not one of the issues preventing the application of Management by Objectives as a tool for organisational performance.
H1: One of the barriers to using management by objectives as a tool for organisational performance is senior managers’ lack of commitment.
Significance of the Study
The Researcher: It will allow the researcher to meet a portion of the requirements for the award of a Master’s Degree in Management.
The company (Zenith Bank of Nigeria Plc): This study will help the firm understand the importance of involving subordinates in goal formulation since it will result in increased productivity, profitability growth, organisational sustainability, and customer and employee happiness.
Future Researchers: The study will be valuable to individuals who plan to conduct studies in relevant fields in the future. It will function as a reference for them. Even so, the findings can serve as the foundation for future research.
Scope of the Study
This study focuses on the usage of MBO as a tool for improving organisational performance. However, the scope is restricted to Zenith Bank of Nigeria Plc. Ugelli.
Limitations of the study
Many factors limit the researcher’s work when authoring this study. The most prominent of the factors include:
Time
The research job is a large task that demands time and energy, which was not on the researchers’ side.
Finance
This is another limiting aspect. Due to restricted financial resources, the researcher is unable to obtain all of the materials required for this endeavour. The researcher faces significant transportation costs to the study location.
Shortage of research materials
Nigerians despise actions that are designed to probe them. They shun researchers because they believe that study will uncover actions that are not intended for public consumption.
The operational definition of words
MBO (Management By Objectives)
! WAEC: West African Examination Council.
SSCE means Senior Secondary Certificate Examination.
! OND = Ordinary National Diploma.
! B.Sc: Bachelor of Science!
! PLC: Public Limited Company.
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