Some managers may resist the program because of this increased paperwork. The top managers and their subordinates should all consider themselves as players of the some team. Contribution by Peter F. Drucker – Management by Objectives (MBO). 2. Both the manager and the subordinates know what is expected of them and hence there is no role ambiguity or confusion. The disadvantages of this method are that employees begin to feel that they are being treated like a piece of machinery. The importance of management includes, among other reasons, the execution of management functions that have been discussed in the essay. Management is also responsible for defining organizational objectives, thus minimizing the waste of effort, money and time (Plunkett, Attner, & Allen, 2007). Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. What Qualifications Do You Need to Homeschool Your Child? The managers usually receive the highest salaries because they hold the most senior positions within any organization or business. Some areas are difficult to quantify and even more difficult to evaluate. This is by making productive use of all human and physical resources that are available. If the … Theory X assumes that, in general, people are lazy and will avoid work whenever possible. Through management, the factors of production can be arranged together, and resources can be organized and assembled (Kochan & Schmalensee, 2003). 1. 1. This may lower their morale and they may become suspicious about the philosophy behind MBO. Since MBO puts strong emphasis on quantifiable objectives,the measurement and appraisal can be more objective, specific and equitable. They may seriously believe that MBO is just another of the management’s ploys to make the subordinates work harder and become more dedicated and involved. With proper management, a business or organization will have set goals and objectives that it aims to achieve, and it will most likely succeed at achieving them. Management by Objectives (MBO) may be resented by subordinates. 4. It grows and it develops and it becomes socially useful. One common issue associated with management is the high costs that are needed to pay the management staff. Businesses and organizations usually have to suffer increased expenditures when they are required to pay big salaries to their managers (Daft & Marcic, 2010). Also, employee satisfaction is derived from informal relationships, how well employees relate to one another and their bosses. The managers are required to establish measurable targets and standards of performance and priorities for these targets. Theory X assumes that once a need is satisfied, an individual is no longer motivated. The managers are required to establish measurable targets and standards of performance and priorities  for these targets. Management can then integrate the factors of production and the available resources in an effective manner that will assist in the achievement of goals. Therefore, management has its pros and cons in any business or organization. 7. Management is necessary in a business or organization because it is responsible for reducing costs. Is Homeschool Harder Than Public School? 1 . Retrieved from http://books.google.co.ke/books?id=kackEJ4tt2kC&printsec=frontcover&dq=management&source=bl&ots=L7-8zUHgaT&sig=UKBkq3MwpiLUEhx9Fgk7W5OpAQQ&hl=en&sa=X&ei=GBAFUO6jCZSP4gSjhcH9CA&redir_esc=y#v=onepage&q=management&f=false, Daft, R. L., & Marcic, D. (2010). This promotes efficacy within an organization or business. It improves communication between management and subordinates. The review technique should be such that any deviations are caught early and corrected. They must be properly communicated, clearly understood and accepted by all. For example, it is not realistic for the R&D department of on organization to set a goal of, say, 10 inventions per year. 3. If the persons who are to operate management by objectives do not fully understand the philosophy of M.B.O., it is no wonder that M.B.O. Most often the subordinates are concerned with their own objectives and the environment surrounding them. This improves their morale and commitment. The Scientific Management approach was developed to help standardize methods of business operations. The integration of MBO system with other systems such as forecasting and budgeting etc., is very poor. In summary, it is important to note that management is necessary in any business or organization. Management. Management. MBO is a major undertaking and should replace old systems rather than just being added to it. Pros of Management. The core management functions include planning, staffing, coordinating, organizing, leading, directing and controlling (Daft & Marcic, 2010). The goals must be continuously reviewed and modified, as the changed conditions require. 2. MBO should be on overall philosophy of management and the entire organization, rather than simply a divisional process or a performance appraisal technique. Prior knowledge and experience cannot help to influence management decision or practices. Just as a car needs a good driver to steer it to its destination, or a ship needs a sailor to lead it to its destination, so does a business or organization requires a good manager(s) to lead it to success (Griffin, 2010). 1. Massachusetts: Massachusetts Institute of Technology. I am a mother of a lovely kid, and an avid fan technology, computing and management related topics. For this reason, the managers do all they can to ensure that their departments execute their mandate despite the scarcity of resources they face. Management also ensures that there is optimum and proper utilization of organization resources. Is Homeschooling Better Than Public School? The Human Resource approach is designed so that upper level management’s needs are fulfilled by allowing workers to use their skills to reach their full potential. Retrieved from http://books.google.co.ke/books?id=FP41RrwEiGoC&printsec=frontcover&dq=management&source=bl&ots=wJCpdsXhC_&sig=I4w7Jw0wbYHehWcBZRYPeVfwat0&hl=en&sa=X&ei=GBAFUO6jCZSP4gSjhcH9CA&redir_esc=y#v=onepage&q=management&f=false, Plunkett, W. R., Attner, R. F., & Allen, G. S. (2007). Through training, employees are assessed by their mental or physical abilities and paired to the appropriate job function with the correct tools to do their job. Proper management usually has very many advantages for businesses and organizations. 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