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Objectives
McFarland: Objectives are goals, aims, or purposes that organisations wish over varying periods of time. Features: Objectives form a hierarchy Objectives form a network Multiplicity of objectives Long and short range objectives
Establishing objectives
Two approaches: Traditional view: set by top management, one-way process, process is perfectly rational. Two types of goals: stated and operational Stated goals statements of desired results, reflect what the organisation should be doing. Operational goals are real goals, tells us what the organisation is trying to do (environmental goals, output goals, system goals, product goals, derived goals). Modern approach: Management by objectives
Management by Objectives
An overall philosophy of management that concentrates on measurable goals and end results. Odiorne: MBO is a process whereby the superior and subordinate managers of an organisation jointly identify its common goals, define each individuals major areas of responsibility in terms of results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.
Features of MBO
MBO emphasises participation in setting goals that are tangible, verifiable and measurable. MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods). MBO, by concentrating on key result areas translates the abstract philosophy of management into concrete targets. MBO is a systematic and rational technique that allows management to attain maximum results from available resources by focusing on achievable goals.
Process of MBO
Organisational purpose & objectives Planning premises
Benefits
Clear goals Better planning Facilitates control Objective appraisal Motivational force Better morale Result-oriented philosophy
Limitations
Goal setting problems Time consuming Increased paperwork Pressure-oriented Undermining leadership Participation problem Inflexibility