Saturday, August 3, 2013

The meaning of management by objectives

MBO

"Management by objectives" concept is a management expert Peter Drucker (Peter Drucker) 1954 in his famous book "management practices" in the first proposed, then he also proposed "management by objectives and self-control" proposition. Drucker believes that work can not have goals, but on the contrary, with the goal to determine each person's work. Therefore, the "corporate mission and mandate, must be translated into the target", if a field without a goal, work in this area is bound to be overlooked. Therefore, managers should be managed through the target on the lower level, when the organization's most senior managers to determine the organization's goals, it must be effectively decomposed into various sub-sectors as well as individual goals, managers under the sub-target for the completion of subordinates to carry out assessment, evaluation and reward.

Management by objectives put forward, then it quickly spread in the United States. A time when Western economies after World War II by a recovery period of rapid development steering, enterprises need to adopt new methods to mobilize the enthusiasm of employees in order to improve competitiveness and the emergence of management by objectives described emerged, then widely used, and soon to Japan, Western Europe, companies emulate popular management community in the world.

Specific form of management by objectives vary, but the basic content is the same. The so-called management by objectives is a method or procedure that enables the organization in consultation with superiors and subordinates, according to the organization's mission to determine the overall organizational goals given period, which decided on the lower level of responsibility and targets, and these As the organizational and operational objectives, evaluation and reward individual contributions of each unit and the standard.

Management by objectives guiding ideology is based on the theory of Y, namely that the targeted conditions, people are able to themselves. Target management and traditional management of common elements: clear goals, participation in decision making, deadlines, feedback performance.


The specific method is the further development of Taylor's scientific management. Compared with the traditional management methods have distinct characteristics, can be summarized as follows:

1, emphasis on the human factor.

Target management is a participatory, democratic, self-control management system, but also a personal needs with organizational goals to combine management system. Under this system, the relationship between higher and lower levels of equality, respect, dependence, support, commitment to goals and was lower in the authorization is conscious, independent and autonomous.

2, the establishment of goals and objectives chain system.

Management by objectives through specially designed process, the organization's overall goal of gradual decomposition, convert various units and sub-goals of employees. Business units from the target to the target tissue, to departmental objectives, and finally to personal goals. In the target decomposition process, rights, responsibilities and benefits of the three has been clear, and symmetrical to each other. These goals in the same direction, interlocking, cooperate to form a coherent target system. Only each person completed his sub-objectives, the overall objective of the entire enterprise to complete only hope.

3, focus on results

Target management to set goals as a starting point, the target for the end of the completion of the assessment. Work is to assess the degree of completion of the standard target, but also the personnel evaluation and award-assessment basis for evaluation of management performance as the only sign. As for the process to complete specific objectives, approaches and methods superiors not interfere too much. Therefore, the target management system, monitoring component is small, and the ability to achieve the control objectives is very strong.


Nature of the target

Target said that the final result, while total goals need to be supported by the sub-goals. Thus, the organization and its goals at all levels to form a target network. As task allocation, self-management, performance evaluation and incentive target implementation has the following characteristics: ? hierarchy; ? network performance; ? diversity; ? can assess sex; ? can be realized; ? challenging; ? accompanying information feedback .

(one) the level of target

Organizational goals form a hierarchical system of organization from a wide range of strategic objectives to specific individual goals. This system contains the top-level organizational vision and mission statements. The second level is the organization's mission. In any case, the organization's mission and mandate must be translated into organizational goals and strategies, goals and strategies more distant point in the future organization, and to provide for the organization of the future framework for action. These action framework must be further refined into more concrete action goals and action plans, so that the target system's grassroots, the goal has branches, departments and unit goals, personal goals.

Hierarchy of the organization of the different officers repeatedly participate in different types of targets established. Board of directors and top executives primarily involved in determining the enterprise's mission and mission objectives, key result areas are also involved in more specific in the overall goal. Middle executives such as Vice President, marketing manager or production manager, mainly to establish the key result areas of the target, branch and departmental goals. Grassroots officers primarily concerned departments and units of the objectives and goals of their subordinates to develop.

(Two) the target network
If the target system is a concept from the entire organization to examine the overall goals of the organization, then the destination network is from a specific implementation plan targets for the overall coordination of the work. Program objectives and plans, which are often formed the desired results and outcomes of a network. If the various target is not related to each other without mutual coordination and also do not support each other, then the members of the organization are often taken out of self-interest may seem beneficial to the department and the entire company is unfavorable way. The connotation of the target network performance of the following four points.

1. Goals and plans are rarely linear, that is not followed by a goal to achieve another goal to achieve, and so on. Goals and planning linked with each other to form a network.

2. Managers must ensure that the target network to be coordinated for each component. Not only to coordinate the implementation of various planning and completion of these plans should be coordinated in time.

3. The various departments in the organization to develop their own department's goals, it must be coordinated with other departments. Some studies conclude that a company seems very easy to develop a department entirely suited to its target, but the target was in the business of another department's goals are contradictory.

4. Organizations to develop a variety of targets, it must be coordinated with a number of constraints. Each target enterprise interconnected to form a huge network, so pay attention to co-ordination between the various objectives, but also pay attention to the various objectives and constraints and other factors coordinated.

(Three) the diversity of targets


The main objective of corporate tasks are usually varied. Similarly, in the hierarchy of the target the specific objectives of each level may also be varied. Some people think that a supervisor can not effectively pursue more goals to 2 to 5 is appropriate. The reason is that too many executives overwhelmed target would thus a loss, even more frightening is that executives may cause excessive focus on small targets to the detriment of the main objectives to be achieved. Also suggested that, even excluding the daily routine work, seems to have no target number of qualified, competent person may simultaneously pursue up to 10 ~ 15 important goals. But this conclusion is questionable, if the number of goals, one of which did not matter which one receive sufficient attention, is planning to work is invalid. Therefore, in considering the pursuit of multiple targets simultaneously, each target must distinguish the relative importance.

(Four) objective assessment of available
Objective assessment of the approach is to target quantified. Quantitative targets also tend to lose some of organization and operation efficiency, but control over the activities of the organization, members of the incentive will bring a lot of convenience. Objective assessment of the expression can be such a meaning: People must be able to answer the question, "In the end, how do I know the goal has been accomplished?" For example. Obtain a reasonable profit goal can best be pointed out that the company is profitable or loss-making. But it does not explain how much profit should be made. Because in the minds of different people, "reasonable" explanation is different, it is reasonable for something subordinates. May be completely accepted by the higher leadership. If the disagreement. Subordinate officers generally can not argue. If we explicitly quantify this objective is "to achieve this fiscal year, 10 per cent return on investment," then it "How much? ~ What? ~ When?" Have made a clear answer.

The wording can sometimes use to illustrate the results of evaluation will be more difficult for senior management and government in particular. But the principle is: Whenever possible, we will provide a clear, can the assessment objectives.

(Five) goals acceptability


According to the American Management psychologist Victor Vroom (Victor Vroom) expectations theory, people's enthusiasm in the work or effort (excitation force) is the product of potency and expectations, which refers to a person potency of a tasks and their results (achievable goals) can bring their own satisfaction assessment that the usefulness of the work objectives (value) evaluation; expectations that people on their own to get the job done smoothly likelihood estimates. That is able to achieve the objectives probability estimates. Therefore. If the recipient of a goal to produce its stimulating effect, then the receiver is. This goal must be acceptable, can be accomplished. Against a target completion are concerned, if the goal is the scope that exceeds its capacity, then the goal is no incentive for its role.

(Six) challenging target


Also according to Vroom's expectancy theory, if a work is completed up to the purpose of the recipient does not make much sense to say. The recipient is no incentive to complete the work; if a job easily done for the recipient. Is a breeze events. Then the recipients do not have motivation to complete the task. The so-called "Jump, peaches." That is the truth.

Goals and challenging the admissibility of the relationship between the unity of opposites, but in practical work. We must unite them.

(Seven) goals accompanying information feedback

Feedback is the process of management by objectives, target setting, target implementation constantly feedback to goal setting and implementation of the participants, so that people always know the organization on their own requirements. Own contribution to the situation. If you create a goal plus feedback. Will be able to further enhance staff performance.

In summary, setting objectives, general requirements, the number of targets should not be too large (diversity), including the work of the main features, and as much as possible and explain what must be done to complete, if possible, should also express the desired The quality and to achieve the objectives of the planned cost (to assess sexual). In addition, the target can promote personal and professional growth and development. Members of tools for challenging (acceptability, challenge), and timely feedback to employees target completion (accompanied by information feedback).


Target management features

MBO(Management by objective) characteristics, notably in the following aspects:

1, clear goal.

Researchers and practitioners have long recognized the importance of developing personal goals. Early studies of the University of Maryland found that a clear goal than just asking people to try to do a higher performance, but a high level of performance and a high target is linked. It is noted that in the enterprise, the target skills improvement will continue to raise productivity. However, the target is not limited to the business importance of the development, but also in public organizations are also useful. In many public organization. Common goal ambiguity for managers is a difficult task, but people have been looking for ways to solve this problem.

2, participation in decision making.

MBO The goal is not like a traditional goal setting, as one way to lower the higher the stated objectives, and then broken down into sub-objectives into all levels of the organization, but with a participatory approach to determine the target, the higher and lower levels jointly participate in the selection set each corresponding level objectives set, namely through consultation and down, step by step to develop an overall organizational goals, business unit objectives, thematic until individual goals. Therefore, MBO goal conversion process is a "top-down", but also a "bottom-up".

3, the prescribed time limit.
MBO emphasizes temporality, making each target has a clear time frame requirements, such as a quarter, a year, five years, or in any known environment appropriate period. In most cases, the objectives are established with the annual budget or major project deadlines agreed. But not to be the case, this is mainly depends on the actual situation to be. Some goals should arrange in a very short period of time to complete, while others will have to arrange a longer period of time. Similarly, in a typical case, the lower position at the organizational level, to accomplish the objectives set time is often shorter.

4, evaluating performance.

MBO will continually seek to achieve the goal of progress feedback to individuals so that they can adjust their own actions. That is, subordinates undertake specific individuals for their own performance goals set responsibilities, and has together with the leaders of their superiors check that objective. Therefore, each person's contribution for his department becomes very clear. Of particular importance is that managers should strive to attract subordinates were evaluated pre-established performance goals, and actively participate in the evaluation process, using this to encourage self-evaluation and self-development approach, spur investment in employees' work and to create an incentive environment.

The advantages and disadvantages of management by objectives

Target management as a management the same way as with other management methods has its advantages and disadvantages, it is a destination management organizations in the application should be clearly understood before.

Goal management advantages.
 The advantage of management by objectives has at least five areas:

(1) an incentive. When the goal of becoming the organization at every level, every department and every member of their own future periods as a result want to achieve, and the possibility of realizing quite large, the goal to become members of their intrinsic motivation. Especially when this result is achieved, organizations have the appropriate remuneration, the target of the incentive effect is even greater. Become a motivating factor from the target point of view, this goal is best to organize each level, each department and organizational goals formulated by each member.

(2) effective management. The implementation of target management can honestly improve organizational management efficiency. Management by Objectives way than planned management organizations in advancing the progress of work to ensure that the ultimate goal of complete organizational aspects superior. Because the target management is a result-based management, not just a planned activity type work. This management forced the organization at every level, every department and every member of the first consideration goals, try to accomplish goals because these goals is to organize the overall goal of decomposition, so when the organization at every level, every department and every members of the target is completed, which is organized to achieve the overall goal. The target management, once decomposition targeting, not specified at all levels, all departments and the various members of the organization to complete their objectives ways, means, but gave everyone in the completion of the objectives of an innovative space, which effectively improved the organization and management efficiency.

(3) a clear mandate. Another advantage of management by objectives is to enable managers at all levels and members of the organization are clearly the organization's overall objectives, organizational structure and system, the division of labor and cooperation between organizations and their respective tasks. Clear responsibilities in these areas, making executives also know that in order to achieve targets must be given appropriate powers subordinates, rather than stay at the helm, a small right not scattered. Other hand, many begin to implement the target management company or other organization, usually in the course of implementation of management by objectives will find organizational system defects, thereby helping organizations to transform their own system.

(4) self-management. Management by objectives is actually a self-management approach, or a kind of self-management members of the organization to guide the way. Management by objectives in the implementation process, the members of the organization is no longer just do the work, execution of instructions, waiting for guidance and decision-making guide, members of the organization at this time has become a clearly defined target units or individuals. On the one hand were members of the organization has been involved in the formulation of objectives and obtain the recognition of the organization; the other hand, members of the organization are working hard to achieve their goals in the process, in addition to outside the target has been set, how to achieve their goal is to decide thing, in this sense, goal management can at least be counted as self-management approach is people-oriented management of a transitional tests.

(5) control is effective. Target management itself is a controlled trial, namely, by the decomposition of the target tissue to ensure overall goal to achieve the ultimate realization of the process is the result of a controlled manner. Target management is not a target decomposition down there will be no matter, in fact top of the organization in the destination management process should always check to compare target for competitions to see who is well, if there are deviations to be corrected. From another perspective, if an organization can have a clear assessment of the target system, then it is itself the best basis for supervisory control.


The lack of management by objectives.

Professor Harold Kunz target management despite many advantages, but there are many shortcomings, the lack of such knowledge if you do not know, it may lead to an unsuccessful management by objectives. ? the following points may be the most important goal management deficiencies:

(1) emphasize short-term goals. Most of the target management objectives are usually short-term goal: annual, quarterly, monthly, etc. Easy to decompose more specific short-term goals and long-term goals rather abstract difficult to decompose, the other short-term goals easy to rapidly effective, long-term goal is not. So, in this way the target management facilities, the organization often seems to emphasize short-term goals and long-term goals do not care. If such a concept in depth all aspects of the organization, the organization of all inmates mind and behavior, organizational development will not benefit.

(2) goal setting difficult. Truly difficult to set targets for the assessment, in particular organization is actually an output of the Commonwealth, its output is not easy to break out a combined contribution of the size of the output of who that is our common goals the results of cooperation, such cooperation is difficult to determine how much you have done, he should do much, so you can measure it very difficult to determine the goal. The goal of an organization sometimes only qualitative description, although we want the target to measure, but in fact it is difficult to quantify, such as the organization effectively serve the logistics department members, although they could take some quantitative indicators to measure, but the completion of these indicators You can not say with certainty that reached a "valid service members," this goal.

(3) can not be contingent. During the execution of the target goal management change is not possible because to do so would lead to tissue confusion. In fact the target as soon as it can not easily change, it is precisely such a lack of flexibility makes the organization operates, unable to adapt to changing external contingency environment. Chinese have a saying called "one size fits all" Many people think that this rigid view, non-contingency perspective, in fact, the same is not the so-called organization itself, but the objective laws, will be able to grasp the objective laws of the status quo , which is actually true with a higher level of contingency.


The type of management by objectives

(1) results-oriented management and process-oriented objectives of management by objectives. This is based on the realization of the target process is required to distinguish. The ultimate goal is to target management performance, so fundamentally speaking, goal management, also known as performance management. In fact, any management the aim is to improve performance.

(2) organizational goals management and job management by objectives. This is the ultimate commitment from the target subject to points. Organizational goals management is a top-down system set up in the organization and implementation of goals, gradually from the upper to the lower level concrete, and to adjust and control organizational activities, seeking to achieve its objectives efficiently management methods.

(3) the results of management by objectives and principles of management by objectives. This is based on the degree of target segments to points. Outcomes of management by objectives is to organize the pursuit of the ultimate outcome of the quantitative indicators for the center of the target management.

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