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Library Administration and Management
Notes 1.6.4 Management by Objectives
Management by objectives is one of the modern approaches to management, which was introduced
by Peter Drucker. He mentioned that what the enterprise needs is the principle of management
that will give full scope to individual strength and responsibility and at the same time provide
a common direction to vision and effort, establish teamwork and harmonize the goals of the
individuals with the common organizational goals. MBO is a system in which specific
performance objectives are determined through participative approach. Progress towards
objectives is periodically reviewed and rewards determined accordingly. In other words it
refers to a formal, or moderately formal, set of procedures that begins with goal setting and
continues through performance review. The key to MBO is that it is a participative process,
actively involving managers and staff members at every organizational level. By building on
the link between the planning and controlling functions, MBO helps to overcome many of the
barriers to planning.
Figure 1.2: Management by Objectives (MBO)
This approach is also known by other names such as ‘Management by Results’ (MBR), ‘Goal
Management’, ‘Planning by Objectives’ (PBO), ‘Results Management’, ‘Joint Target Setting’, ‘Work
Planning and Review’. Today, MBO is used not only as a technique of goal setting but also as a
total system of planning, motivation, performance appraisal and self-control.
Example: To illustrate MBO: A company that is seeking to get people to work more
collaboratively than individually gives its people objectives that they cannot achieve alone.
There is no explicit requirement to work together, but the people soon find that they only way
to succeed is to collaborate.
Self Assessment
Fill in the blanks:
14. The ………………………………. emphasizes scientific research as the basis for developing
theories about human behaviour in organizations that can be used to develop practical
guidelines for managers.
15. Management by Objectives is one of the modern approaches to management, which was
introduced by ……………..………
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