PETER DRUCKER ANALYSIS ON MANAGEMENT BY OBJECTIVES

PRESENTED BY:-

FAIZAH BINTI ABDUL AZIZ

2011194677

BA2A

Peter F. DruckerAustrian-born American management consultant, educator, and

author

WHO IS PETER DRUCKER?Peter Ferdinand Drucker

November 19, 1909 – November 11, 2005

Austrian-born American management consultant, educator, and author - philosophical and practical foundations of the modern business corporation

A leader in the development of management education and invented the concept known as management by objectives (MBO

Management By Objectives

Process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them.

The essence of MBO is participative goal setting, choosing course of actions and

decision making

Features Of Management By Objectives (MBO)

Superior and Subordinate Participation

Joint Goal-Setting

Joint Decision on Methodology

Support From Superior

Steps in MBO Planning

Goal Setting

Manager Subordinate Involvement

Matching Goals and Resources

Implementation of Plan

Review and Appraisal of Performance

Advantages of MBO

Develops result-oriented

philosophy

Formulation of Dearer Goals

Facilitates objective appraisal

Raises Employee

Morale

Facilitates Effective Planning

Acts as Motivational

Force

Facilitates Effective Control

Facilitates Personal

Leadership

Limitations of MBO

Time-Consuming

Reward Punishment Approach

Increases Paper Work

Creates Organizational

Problems

Develops Conflicting Objective

Problems of Coordination

Lacks Durability

Problems Related to

Goal Setting

Lack Of Appreciation

Criticism Towards MBO

Flawed and has never been proven to work effectively

Dale Krueger – The system is difficult to implement, and that

companies often wind up overemphasizing control, as

opposed to fostering creativities, to meet their goals

W. Edwards Deming – A lack of understanding of

systems results in misapplications of objectives

(cont.) By setting production target, will encourages the

resources to meet that certain target which resulting in poor

quality

How To Make MBO Effective

Support From All

Acceptance of MBO program by

Managers

Training of Managers

Organizational Commitment

Allocation of adequate time and resources

Provision of uninterrupted

information feedback

-conclusion-

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