Management By Objective, By Peter Drucko (MBO)?
It is common for the organizations to set goals and construct plans. The organization which plans well is more likely to success in the future as it helps to stimulate effort and eliminate resource wastage. Naukowe and MIkolaja(2015) stated that "Management by objective (MBO) is the method by outlining goals for every person and department and use them to monitor progress towards their goals." Peter Drucker first described MBO in his book "the practice of management" in 1954. It works in 4 steps. First, set goals for corporate strategic, departmental and individual. At this stage, all team of employees is involved in to make effective goals and assign the goal to different responsibility departments. Secondly, develop the action plan, which
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There are two disadvantages: ethic problems from using MBO; MBO only makes short-term goals rather than long terms. First of all, MBO ignores the ethic issue arising from the pursuing of the goals. Organizations may overemphasize the goals itself and neglect the process of how it achieved. Namely, employees may behave unethically just for the achievement and the reward. If the unethical behavior being exposed, it will significantly harm the cultural influence of the organization, and even causing integrity problems. One of the great examples would be the Volkswagen scandal in 2015, as Cavico and Mujtaba(2016) suggested: "the company deceiving government regulators and customers regarding compliance with pollution emission standards". Just for achieving the goal of increasing revenue, the company took the unethical approach and undervalue the environment. This significantly damaged the company's good reputation, lowering the status among consumers. Secondly, the goals made by MBO are tended to be short-term. It is hard for organizations to forecast the long-term trend due to the changes of variables, for example, change in the customer preferences, which will affect the process of planning. As a result, this issue will lead to a narrow focus on the organization increasing their future risks. The doll company, can be an illustration: in long term, when consumer preferences shift to other toys, plans are …show more content…
J., & Mujtaba, B. G.(2016). Volkswagen Emissions Scandal: A Global Case Study of Legal, Ethical, and Practical Consequences and Recommendations for Sustainable Management. Global Journal of Research in Business & Management, 4(2), 303-311. Retrieved from www.gpcpublishing.com.
Danny, S. , Timothy, D., & Richard, L. D. (2018). Management(6). Melbourne, Australia: Cengage Learning.
Ewing, J. (2000). Siemens Climbs Back, BusinessWeek, 79-82. Retrieved from https://www.bloomberg.com/news/articles/2000-06-04/siemens-climbs-back-intl-edition.
Levit, A. (2015). MBO versus S.M.A.R.T. vs KPI? What's Your Goal Setting Protocol of Choice. Retrieved from https://www.quickbase.com/blog/mbo-versus-s-m-a-r-t-vs-kpi-whats-your-goal-setting-protocol-of-choice
Naukowe, W., & MIkolaja, U. (2015). Management by objectives as a method of measure teams' effectiveness. Journal Of Positive Management, 6(3), 67-82.
Werssowelz, R., & Beer, M., (1995). Human Resources at Hewlett-Packard: case study. (unpublished doctoral dissertation). Harvard University, Cambridge,
There are two disadvantages: ethic problems from using MBO; MBO only makes short-term goals rather than long terms. First of all, MBO ignores the ethic issue arising from the pursuing of the goals. Organizations may overemphasize the goals itself and neglect the process of how it achieved. Namely, employees may behave unethically just for the achievement and the reward. If the unethical behavior being exposed, it will significantly harm the cultural influence of the organization, and even causing integrity problems. One of the great examples would be the Volkswagen scandal in 2015, as Cavico and Mujtaba(2016) suggested: "the company deceiving government regulators and customers regarding compliance with pollution emission standards". Just for achieving the goal of increasing revenue, the company took the unethical approach and undervalue the environment. This significantly damaged the company's good reputation, lowering the status among consumers. Secondly, the goals made by MBO are tended to be short-term. It is hard for organizations to forecast the long-term trend due to the changes of variables, for example, change in the customer preferences, which will affect the process of planning. As a result, this issue will lead to a narrow focus on the organization increasing their future risks. The doll company, can be an illustration: in long term, when consumer preferences shift to other toys, plans are …show more content…
J., & Mujtaba, B. G.(2016). Volkswagen Emissions Scandal: A Global Case Study of Legal, Ethical, and Practical Consequences and Recommendations for Sustainable Management. Global Journal of Research in Business & Management, 4(2), 303-311. Retrieved from www.gpcpublishing.com.
Danny, S. , Timothy, D., & Richard, L. D. (2018). Management(6). Melbourne, Australia: Cengage Learning.
Ewing, J. (2000). Siemens Climbs Back, BusinessWeek, 79-82. Retrieved from https://www.bloomberg.com/news/articles/2000-06-04/siemens-climbs-back-intl-edition.
Levit, A. (2015). MBO versus S.M.A.R.T. vs KPI? What's Your Goal Setting Protocol of Choice. Retrieved from https://www.quickbase.com/blog/mbo-versus-s-m-a-r-t-vs-kpi-whats-your-goal-setting-protocol-of-choice
Naukowe, W., & MIkolaja, U. (2015). Management by objectives as a method of measure teams' effectiveness. Journal Of Positive Management, 6(3), 67-82.
Werssowelz, R., & Beer, M., (1995). Human Resources at Hewlett-Packard: case study. (unpublished doctoral dissertation). Harvard University, Cambridge,