Management By Objective Enhances Effectiveness

Management By Objective Enhances Effectiveness -



In the management of organizations, there’re many theories that can be used by various firms. One such model that can be utilized is the management by objective approach. In this article we will have a look at some of the principles that guide the management objective that focuses on the objectives. We will also have a look at some features and weaknesses and strengths of this approach.

Effective Managers

What does being a manager mean? Despite the fact that there are many skills of being a manager who is effective, the exact combination of the skills that are needed varies from one job or sector to the other. Many people in management and the business writers agrees to the fact that prosperous management involves; organizing, leading, controlling and planning of the resources inclusive of personnel, so as to effectively and efficiently achieve the goals of an organization.

If you practice any of the above activities, then you’re certainly a manager, regardless of whether the term “manager” appears on your job title. Nevertheless, most managers, particularly the ones who are new in a certain role, do not feel prepared enough for the task and are therefore in need of guidance and advice on how they can start fulfilling their new task in an effective manner that satisfies the superior’s expectations.

However, being aware of the fact that there is no absolute measure of management effectiveness, various people broadly agree that when the manager fulfills the organization’s goals and aims, they are considered to have achieved effectiveness. The challenge arises when one tries to define what the exact goals and aims are and also when laying out the format of the standard operating techniques that the managers can utilize so as to achieve them more effectively.

Key Performance Indicator

One of the procedures that can be utilized is the Key Performance Indicators (KPI) which is a popular approach whereby job requirements in the role of management are clearly defined in the list of outcomes, skills and qualities written on the paper, with the essential ones being subdivided to smaller sub- goals attaching the numerical target like number of the sold units, the percentage increase that was attained or the number of the times completed so that the performance of the manager can be considered to be satisfactory.

Management By Objective

Specifically, one popular version of the Key Performance Index solution is an approach by Peter Drucker, a prominent writer on the issues of management, referred to as the “Management by Objective”. This is whereby the goals and aims of an organization are presented and organized as “Objectives” which should be fulfilled. The managers are then assessed based on how they properly contributed to achievement of the objectives.

The limitation of this management approach is the fact that its application in a real- life situation while at the workplace is often challenging. Basically, many challenges arise and various issues complicate attainment of the objectives that may sometimes insinuate that the objective is itself not that great. Nevertheless, the general agreement in the business/ organization is that it’s considered to be the practical idea and a valuable description on how things are supposed to be performed, even when the activities don’t actually end up always being performed in the exact way as described in the model. Nonetheless, in spite of being difficult to apply, the “Management by Objective” approach by Druckler remains being a perfect technique of envisaging the organization’s goals and creating templates for manager’s performance to aim at, while still acting map by guiding the organization to achieve the aims/ goals and develop its business course in the future.

Maximum Goals Can Be Attained Easily

The approach of management by objective tends to emphasize on critical thinking. The set goals should be achievable and realistic so as to further assist in guaranteeing this model will contribute to achievement of maximum outcomes. Attainability of these goals and participative framework makes achievement of success to be more straightforward and improve the efficiency of the organization. Management by objective is a systematic approach that can assist organizations in creation of an approach that is rational to achieve the objectives.

Due to the fact that this framework focuses on setting objectives, it can provide more breathing room to the subordinates and supervisors during implementation of the objectives. This system tends to have in- built independence that allows innovative decision making because the only essential part is setting and achieving realistic objectives. This independence can help and motivate the subordinates, particularly, in performing to their maximum capabilities.

8 Practices Of Effective Managers

Additionally, Peter Drucker delineates the 8 practices which all the effective managers tend to follow. These practices include;

• Effective Managers Ask “What Should Be Done?”
• The Managers Inquire “What Is The Right Choice For The Business?”
• They Develop The Action Plans
• Effective Managers Take The Responsibility Of Making Decisions
• Effective Managers Take The Responsibility Of Communicating To Their Team Members
• They Concentrate On The Opportunities
• They Manage Meetings That Are Productive
• They Value Team Work And Uses The Term “We” Instead Of “I”

These 8 practices of the effective managers are grouped into three categories. The first 2 practices offers them with the knowledge that they need for performing their tasks, while the following 4 allows to turn that knowledge to action and the last 2 ensures that the entire team or organization is accountable and responsible (not only an individual manager).

Therefore, the commitment of organization to at least implement a framework that is broad as the “Management by Objective” by Peter Drucker and the dedication of the managers to engage in those 8 practices that we have described will result to great movement towards the goals of an organization and a significant increase in the effectiveness of the management.


The approach of Management by Objective has developed to become a very popular theory in management. It focuses on developing a climate where all members of the organization have the ability of influencing the decisions.