OBJECTIVE-BASED MANAGEMENT: A TOOL FOR INCREASED PRODUCTIVITY AND DEVELOPMENT
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ABSTRACT
The primary objective of this study is to analyze Management by Objectives as a tool for organizational performance, focusing on Zenith Bank of Nigeria Ugelli. Management by Objectives is a method for achieving improved managerial results in which superior and junior managers in an organization identify main areas of responsibility in which they will work, establish criteria for good or poor performance, then measure results against those criteria (Derek 2005: 156). Management by objectives is often referred to as management by objectives. Nonetheless, there have been individuals who have long emphasized management by objectives and, in doing so, have contributed to the system’s evolution. Management by objectives is favored over a structured approach to goal-setting for any organizational unit. This study’s primary limitation is the deficiency of appropriate management practices in Nigerian business administration. Some of these tools are not being utilized, and when they are, they are not being employed effectively. Management by objectives is not only a strategy for achieving well-coordinated managerial goals, but also a widespread management style that permeates all human activities, including business, education, government, healthcare, and non-profit organizations. Sadly, many firms have yet to implement this strategy for gaining the commitment and support of their employees. The primary objective/hypothesis of the study was to determine the many issues impacting management of objectives as an instrument for organizational performance and the level of participation of both managers and employees in the establishment of goals to be attained in the organization. Both primary and secondary sources were utilized to acquire data. The primary sources of primary data were staff interviews and a questionnaire. The questionnaire was the primary instrument for data collection. The data were given as frequency distributions and analyses in tables and analyses. In order to assess the hypotheses, the statistical test of proportion (Z-test) was utilized. The major findings of the study were as follows: MBO helps to obtain the total commitment of all employees to work together to achieve a common goal; a good and prompt salary, promotion when due, a good relationship with management, and recognition of achievement improve the performance of workers, thereby enhancing organizational performance when management by objectives is implemented. The study advised that managers involve subordinates in the formulation of unit objectives, which are then changed, compiled, approved, and disseminated throughout the organization. Moreover, once the objectives have been agreed upon, there should be autonomy in the implementation of plans, and the individual should be able to choose the means for reaching those objectives without being led by a manager of a higher rank. In conclusion, the study uncovered a number of positive implications and the applicability of management by objectives to the contemporary management of enterprises in Nigeria. In practice, management by objectives necessitates that each manager of a unit collaborate with his subordinates to establish the department’s goals in accordance with the corporate mission and objectives specified at the corporate level.
FIRST CHAPTER
INTRODUCTION
The study’s background
Effective administration of the day-to-day operations of the business requires a variety of administrative tools. One of these tools is management by objectives. The senior and subordinate managers in a company identify the primary areas of responsibility in which they will work in order to achieve enhanced managerial outcomes. Establish criteria for determining whether a performance is satisfactory or deficient, and a method for comparing actual performance to these criteria (Derek 2005: 156).
Management by objectives is often referred to as management by objectives. Certain individuals, however, have long placed a focus on management by objectives, thereby defining management by objectives as a systematic management strategy for establishing goals for any organizational unit.
Odiorne (1981:1) defines MBO as a system of management in which the superior and subordinate jointly identify objectives, define major areas of responsibility in terms of expected results, and use these objectives and expected results as guides for operating the unit and evaluating the contribution of each of its members. In addition, according to Odiorne, management by objectives is a “management system” that provides a general framework for guiding and outlining the course of an organizational unit. He went on to say that “superiors and subordinates identify objectives jointly.” In other words, it is a participative management technique that necessitates cooperation and dedication. Expected “results” are specified in the definition. Consequently, management by objectives focuses on the organization’s production and evaluates individuals based on their contribution to this output.
Management by objectives is an approach in which management establishes specified goals for employees to achieve within a predetermined time frame. Management by objective is a dynamic method that aims to reconcile the company’s requirement to define and fulfill its profit and growth objectives with the managers’ desire to contribute and grow. It is a difficult yet rewarding company management style.
Regardless of the size of a company, management by objectives can be successful if the procedures are understood and managers are patient enough to allow the system to become established. Management by aim is an efficient planning, control, and growth strategy.
Management by objectives was defined by Koontz and O’Donnell (1968: 485) as a technique of system or method of management in which superior and subordinate managers of an organization agreed on its broad goal, translated it into a series of specific short-term goals, defined each individual’s major areas of responsibility in terms of expected results, and continuously reviewed the accomplishment as the sole basis for evaluating and rewarding them.
Management by objectives provides employees with the chance to participate in decision-making, within the parameters of these parameters. It assumes that the employee has been appropriately picked and trained, and is notified that he or she is responsible for attaining the required goals inside the firm.
Organizations are omnipresent. According to Mullins (2005:256), organizations are established by people to transcend individual limits and succeed individually. Thus, organization becomes a means of survival for the people and exerts a significant daily impact on their lives and way of life. The most decisive factor for the survival of any organization is the existence of capable men and women with the proper method for combining the organization’s resources (Man, Machine, Materials, and Money) to fulfill its objectives.
Appropriately, it should be noted that Nigerian companies’ management lacks the necessary techniques for effective management. Some of these tools are not being utilized, and when they are, they are not being employed effectively. Management by objective is not only a strategy for achieving well-coordinated managerial goals, but also a widely used management technique that permeates all human activities, including business, education, government, health care, and non-profit organizations.
The majority of management strategies, systems, and tools are poorly understood, resulting in organizational losses and damages. In addition, it is the inappropriate use of procedures and the refusal of upper management to employ the proper instrument to address management issues.
On the basis of these tendencies, the researcher seeks to determine the potential and challenges of management by goal as a tool for organizational success in Nigeria.
The problem’s description
It is important to mention that the management of enterprises in Nigeria lacks the necessary management techniques. Some of these instruments, such as management by objectives, are not employed, and when they are, they are not used efficiently. Management by objective is not only a method for achieving a well-coordinated management performance, but also a popular management technique that permeates all human activities, including business, education, government, health care, and non-profits.
Sadly, many firms have yet to implement this strategy for gaining the commitment and support of their employees. Those who do so frequently give the MBO technique lip service only. Thus excluding staff from setting standards and objectives that concern them. In such circumstances, control and objective achievement are compromised.
The study’s purpose
The study’s overarching purpose is to investigate the potential and challenges of management by objectives as a tool for organizational success in Nigeria.
The study has the following precise objectives:
To identify issues influencing objective-based management as a performance indicator for an organization.
Determine the extent to which both management and employees are involved in the organization’s goal-setting process.
Determine if staff have the required authority and responsibility to achieve the established goals.
Research question
The following research questions have been prepared in pursuit of the study’s research purpose.
What are the impediments to using management by objectives as an instrument for organizational performance?
To what extent do both management and employees engage in determining the organization’s objectives?
To what extent do employees have the authority and responsibility necessary for objectives-based management to be effective?
Hypothesis of study
This investigation will be guided by the following hypothesis:
Ho: Managers and employees are not involved in the establishment of organizational performance-enhancing objectives.
H1: Managers and employees collaborate on the establishment of performance-enhancing goals for the organization.
Noncommitment of senior managers is not one of the issues that militate against the implementation of Management by Objectives as an organizational performance instrument.
Noncommitment of senior managers is one of the issues that militate against the adoption of management by objectives as an instrument for organizational performance.
The study’s significance
The Researcher: This will allow the researcher to meet a partial requirement for the award of a Master’s Degree in Management.
The Company (Zenith Bank Nigeria Plc): Through this study, the company will realize that involving subordinates in goal-setting will result in increased productivity, profitability growth, sustainability of the business, and customer and employee happiness.
Future Researchers: Those who conduct research in related fields in the future will benefit from this work. It will function as a resource for them. The findings can even serve as the basis for future research.
The study’s scope
This study focuses on the application of MBO as a tool for enhancing organizational performance. However, the scope is limited to the Ugelli branch of Zenith Bank of Nigeria Plc.
The study’s limitations
Numerous constraints limit the researcher’s ability to complete this assignment. The factors that are most significant include:
Time
The research work is a large undertaking that necessitates time and effort, none of which were available to the researchers.
Finance
This is a further issue of limitation. Due to a lack of funds, the researcher is unable to acquire all of the necessary materials for this project. The researcher incurs a very high cost for transportation to the study site.
Lack of Academic Resources
Activities that tend to probe Nigerians are unpopular. They tend to shun researchers because they believe that their private behaviors will be disclosed through research.
operative definitions of terms
Management By Objectives.
! WAEC: Western African Examination Council
Senior Secondary Certificate Exam
! Ordinary National Diploma — OND
Bachelor of Science (B.Sc.)
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OBJECTIVE-BASED MANAGEMENT: A TOOL FOR INCREASED PRODUCTIVITY AND DEVELOPMENT
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