The Management of an Organization - Essay Example

Management by Objective (MBO Effects in the Organization In the management of an organization, there are different goals that are needed to be achieved. The cohesion of the different groups within an organization as well as the execution of the plans, goals, missions and vision can be considered as the fundamental components that make up the success of an organization. The main goal of the study undertaken is to be able to present one of the methods and techniques in the management of organizations which is the management by objective. In addition, the effects of the MBO in terms of the efficacy in setting, planning and accomplishing organizational goals are also considered of importance in the concept to be presented. MBO Defined The management by objective is a technique that is applied which is based on set objectives that are achievable by the company, the divisions and the employees. These objectives then are considered as a measurable contribution of the individuals in the company to the success in the achievement and completion of the goals of the whole organization (Drucker 121-30). Due to the fact that MBO is based on the aim to be a measurable management technique, the activities and job assignments are then gauged in measurable and numerable quantities. The number of activities done constitutes an important role in the assessment of performance of the employees. For that matter, the quantity of work done can be incorporated to the type and quality of activity that is undertaken (Drucker 121-30). The application of MBO can be on the different levels of the organizational system, thus, covering different forms of activities. Included in such activities are human resources, maintenance services, research and development, sales, finance and most importantly production. The said management technique became widely known as the setting up of quotas in different types of jobs and organizational roles. When the said term is heard, the vision of numerable work values is perceived (Deming 24, 54; Drucker 121-30). The MBO is focused on the establishment of specified objectives that can be achieved through the course of operation. In addition, the quality of the work undertaken in the process of achievement of such goals is also given high regard. The acknowledgement of the division or individual employee with the most commendable performance is practiced for motivation in the said system (Garrison and Raynes 121). The application of the said system can be considered to gain popularity on the basis of the benefits that can be attributed to the technique. The Benefits of MBO There are different of advantages that can be associated with the MBO, thus, it is considered as one of the management techniques commonly applied. Basically, the performance check and balance associated with the process can be considered as included in the main reasons for the essential characteristics of the MBO. Included in the benefits of MBO are improved management, better potentials in terms of organizing, gearing of the collective goals of the whole organization and application of effective control processes. The said benefits can enable adaptability of the company in the event of business and economic crisis (Drucker 121-30; Garrison and Raynes 121-9). Improved management can be achieved through the main concern of the managers to attain better results in contrary of the limited point of view of performance of the activities within the organization. Aside from the perception of the results of the performance of the employees, the setting of goals is also another trained aspect in the capability of the managers. With such training, managers can possess exceptional management skills (Drucker 121-30; Garrison and Raynes 121-9). The better potentials in organizing can be attributed to the assertion of the cohesion of objectives within subdivisions comprising the whole organization. For that matter, each objective that is established must simultaneously perceive the total welfare of the division and the organization. The process can lead to more organized employees that possess commitment and enthusiasm in working (Drucker 121-30; Garrison and Raynes 121-9). Another important factor in the MBO is the capability for effective control in the activities within the company. This can be attributed to the numerical recording of the achievements and the performance of the participants within the organization. Feedback system can be considered as a way of recognition or a form of discipline (Drucker 121-30; Garrison and Raynes 121-9). The atmosphere within the organization can be considered as highly complex. For that matter the application of MBO is commonly done in association with other management techniques. Another reason can be attributed to the limitations of the said method. The Limitations of MBO The limitations of MBO can be attributed to the factors that are also responsible for the advantages. The system of setting specific goals that are commonly assessed numerically can be considered objective but it lacks the consideration of a qualitative assessment of the performance of the individuals, the departments and the whole organization. There is a higher stake then when an employee fail to perform a particular task regardless of the conditions involved (Drucker 121-30; Garrison and Raynes 121-9). In addition, competition that can be caused by the setting of numeric goals and quota can be considered to limit the esteem and capabilities of the employees in terms of performing tasked. Downgrading of the level of confidence of the employees can be translated to significant reduction and degradation of the work and professional performance (Deming 24, 54). Certain critics of the MBO expressed that the elimination of the management of objective can be considered as highly feasible specifically in the periods of crisis. Work standards and quotas can lead to stress for the employees thus their performance can be affected. Highly developed leadership is more important due to the fact that effective leaders and managers can motivate the people to perform well in addition to the task of keeping the whole group cohesive, cooperative and functional. Due to the said tendencies the performance of the company can be affected. For that matter, application of the MBO technique should be assessed in a regular and timely manner to avoid the possible negative tendencies on the basis of the perceived limitations of the said method. Conclusion The MBO can be considered as a functional management technique. It is important though for the leaders and managers of the company to continuously guide and check the performance, the motivation and the established objectives of the people to avoid the possible down side of the application of the management by objective technique. Work Cited Deming, W. Edwards. Out of the crisis: For Industry, Government, Education. MIT Press, 2000. Drucker, Peter F. The Practice of Management. New York: Harper & Row, 1954. Garrison, John E. and Anthony E. Raynes. “Results of a Pilot Management-by-Objectives Program for a Community Mental Health Outpatient Service.” Community Mental Health Journal 16 (2) June 1980: 121-129. Read More