Management by Objective's Drucker

Introduction Management can be defining as an act of using all the accessible resource to achieve a desired goal or objective (Drucker 1986). Managers are the people in the organization who do all the management. They need to set objectives, organizes, motivates, and communicated with all other employee in the organization to ensure that objective are met. There are many different ways in managing depends on each managers styles and expertise. As one said there are more that one way to do the right things. Manager tasks is to create a process that is work for a their organization. As long as the objective of the organization is achieved, there is no right or wrong way. According to Drucker’s statement, each team in the organization receive a specific objective from the manager that they have to achieve in which the manager do not need to know to actual detail of how they do it. This is called Management by Objective. Management by objective works well in sales department in the fashion industry organization since the goal of that department can be specifically set. On other hand, it is harder to use this approach in designing part since the outcome is mostly depend on the customers in which goal and objective is more complicated to determine because there are many factors involved. In fashion industry, Management by objective can work in some occasions but not all of them. This paper will analyze Drucker’s Management by objective Model, in which situation where it works and its limitation to the fashion industry.

Drucker’s Management by Objective Model Drucker established a management process that can work as the foundation of every organization called Management by Objective in his book, The Practice of Management (1954). Management by Objectives (MBO) is a system, in which the goal of the organization is matched with the employees’ goal. First, the organizational objectives are set then cascading down to the subordinates. Objectives are then

References: Drucker, P. F. (1954) The Practice of Management. New York: HarperBusiness Drucker, P. F. (1986) Management: Tasks, Responsibilities, Practices. New York: Truman Talley Books Martin, M, and Heller, K. (2010) Improving Sales Force Performance with MBO-Based Pay [online] available from < http://www.shrm.org/hrdisciplines/compensation/artic les/pages/salesforcembo.aspx> [27 February 2013] Thomson, T.M. (1998) ‘Management by Objective’ 2nd edn. San Diego: Pfeiffer Thompson, K. R., Luthans, F., and Terpening, W. D. (1981) ‘The Effects of MBO on Performance and Satisfaction in a Public Sector Organization’. Journal of Management 7(1), 53-68