management by objectives

• Management by Objectives

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Productivity Drivers of productivity growth

1 Other drivers of productivity growth include effective supervision and job satisfaction.

Having an effective or knowledgeable supervisor (for example a supervisor who uses the Management by Objectives method) has an

easier time motivating their employees to produce more in quantity and quality. An

employee who has an effective supervisor, motivating them to be more productive is likely

to experience a new level of job satisfaction thereby becoming a driver of productivity itself.


SuccessFactors Current focus

1 SuccessFactors' Human Capital Management solutions are based on

Management by objectives principles. The acquisition of SuccessFactors by SAP on Dec

2011 added SuccessFactors' technology expertise to SAP's cloud assets. The alleged

goal of the combination of SAP and SuccessFactors is to establish an advanced end-to-end offering of cloud and on-premise

solutions for managing Human Capital Management processes.


Management 20th century

1 Some of the more recent developments include the Theory of

Constraints, management by objectives, reengineering, Six Sigma and various information-technology-

driven theories such as agile software development, as well as

group management theories such as Cog's Ladder.


New public management Developments

1 A 2003 Organisation for Economic Co-operation and Development

paper described the characteristics of the new public management as decentralization, management by

objectives, contracting out, competition within government and

consumer orientation.


Decentralization - Government decentralization

1 It has been called the "new public management" which has been described as decentralization, management by objectives,

contracting out, competition within government and consumer

orientation.


Marketing operations - Marketing Performance Measurement

1 Marketing Performance Measurement should be a logical extension of the Planning and

Budgeting exercise that happens before each fiscal year. The goals that are set should be

measurable and personal. Every person in the Marketing organization should know what they

have to do to help the function, and the company, achieve its goals. Some companies

use Management By Objectives (MBOs) to incent employees to meet goals. Other

companies simply use the Human Resources Performance Management process.


Business value - History

1 Peter Drucker was an early proponent of business value as the proper goal of a firm,

especially that a firm should create value for customers, employees (especially knowledge

workers), and distribution partners. His management by objectives was a goal setting and decision-making tool to help managers at all levels create business value. However, he was skeptical that the dynamics of business value could ever be formalized, at least not

with current methods.


Cross-functional team - Less goal dominated

1 Since the publication of Peter Drucker’s views on Management by objectives, business decision making has become more goal-

oriented. Managers have come to view decision-making generally, and strategic thinking in

particular, as a multi-stage process that starts with an assessment of the current situation, defining objectives, then determining how to

reach these objectives. Management by objectives took this basic scheme and applied it

to virtually all significant decisions.


Anti-pattern - Organizational

1 Management by objectives: Management by numbers, focus

exclusively on quantitative management criteria, when these are

non-essential or cost too much to acquire


W. Edwards Deming - Key principles

1 Remove barriers that rob people in management and in engineering of their right to pride of workmanship.

This means, inter alia, abolishment of the annual or merit rating and of

management by objectives (See Ch. 3 of "Out of the Crisis").


Quality function deployment - Relationship to other techniques

1 The QFD-associated Hoshin Kanri process somewhat resembles Management by

objectives (MBO), but adds a significant element in the goal setting process,

called "catchball". Use of these Hoshin techniques by U.S. companies such as

Hewlett Packard have been successful in focusing and aligning company resources

to follow stated strategic goals throughout an organizational hierarchy.


Strategic management - Origin

1 Peter Drucker was a prolific strategy theorist, author of dozens of management books, with a career spanning five decades. He stressed

the value of managing by targeting well-defined objectives.Drucker, Peter The Practice of Management, Harper and Row, New York,

1954. This evolved into his theory of management by objectives (MBO). According

to Drucker, the procedure of setting objectives and monitoring progress towards them should

permeate the entire organization.


Decentralization - Government decentralization

1 It has been called the new public management which has been described as decentralization, management

by objectives, contracting out, competition within government and consumer orientation.Managing

Decentralisation: A New Role for Labour Market Policy, Organisation for Economic Co-operation and

Development, Local Economic and Employment Development (Program), OECD Publishing, 2003,

[http://books.google.com/books?id=LJh1onzfJMICpg=PA135dq=New+Public+Management+Decentralisationhl=ensa=Xei=6WgUUcjVJevW0gHs

3oH4AQved=0CEcQ6AEwBA#v=onepageq=New%20Public%20Management%20Decentralisationf=false

p 135], ISBN 9264104704, 9789264104709


Process improvement - The Helix Methodology

1 In addition, HEI/BPA provides the metrics and performance measures needed to support Management by objectives|MBO and performance

score card programs.http://www.projectmanagement.com/content/attachments/helix

man_060809081921.pdf


Index of management articles

1 * Peter Drucker's Management by objectives (MBO)


Peter Drucker

1 'Peter Ferdinand Drucker' (; ; November 19, 1909– November 11, 2005) was an Austrian-

born American management consultant, educator, and author, whose writings

contributed to the philosophical and practical foundations of the modern business

corporation. He was also a leader in the development of management education, and he invented the concept known as management by

objectives.Drucker, Peter F. “Reflections of a Social Ecologist,” Society, May/June 1992.


Peter Drucker - Key ideas

1 * The need to manage business by balancing a variety of needs and goals,

rather than subordinating an institution to a single value.Drucker, Peter F., The Practice of Management, pp 62-63, (1954)Drucker, Peter F., Managing for the Future, p. 299, (1992) This concept of management by objectives forms the keynote of his 1954

landmark The Practice of Management.Drucker, Peter F., The Practice

of Management, p. 12, (1954)https://store.theartofservice.com/the-management-by-objectives-toolkit.html

Peter Drucker - Criticism of Drucker's work

1 Others maintain that one of Drucker’s core concepts

—“management by objectives”—is flawed and has never really been

proven to work effectively. Critic Dale Krueger said that the system is difficult to implement, and that

companies often wind up overemphasizing control, as opposed to fostering creativity, to meet their

goals.Krueger, Dale. Strategic Management and Management by

Objectives, Small Business Advancement National Center, 1994.


Peter Drucker - Contributing writer

1 *1988: Handbook of Management by Objectives Bill Reddin and Denis

Ryan (Published by Tata Mcgraw-Hill in New Delhi).


Management by objectives

1 'Management by objectives' ('MBO'), also known as 'management

by results' ('MBR'), is a process of defining goal|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.



1 The term management by objectives was first popularized by Peter Drucker in his 1954 book The

Practice of Management.Drucker, Peter F., The Practice of

Management, 1954. ISBN 0-06-011095-3



1 According to George S. Odiorne, the system of management by objectives can be described as a process whereby the superior and subordinate

jointly identify its common goals, define each individual's major areas of responsibility in

terms of the results expected of him, and use these measures as guides for operating the unit

and assessing the contribution of each of its members.Odiorne, George S., Management by Objectives; a System of Managerial Leadership,

New York: Pitman Pub., 1965.


Management by objectives - Unique features and advantages of the MBO process

1 Behind the principle of Management by Objectives (MBO) is for employees to have a clear understanding of the roles and responsibilities expected of them. Then they can understand how

their activities relate to the achievement of the organization's goal. Also places importance on

fulfilling the personal goals of each employee.


Business management - 20th century

1 Some of the more developments include the Theory of Constraints,

management by objectives, business process reengineering|reengineering,

Six Sigma and various information technology|information-technology-

driven theories such as agile software development, as well as

group management theories such as Cog's Ladder.


Business plan - Uses

1 **Management by objectives (MBO) is a process of agreeing upon

objectives (as can be detailed within business plans) within an

organization so that management and employees agree to the

objectives and understand what they are in the organization.


SMART criteria

1 SMART criteria are commonly attributed to Peter Drucker's management by objectives concept. The first known use of the term occurs in the November 1981 issue of Management Review

by George T. Doran.Doran, G. T. (1981). There's a S.M.A.R.T. way to write management's goals and objectives. Management Review, Volume

70, Issue 11(AMA FORUM), pp. 35–36. The principle advantage of SMART objectives is that

they are easier to understand, do, and be confident that they have been done.


Incentive program - Sales

1 Sales metrics used in an SIP are typically in the form of sales quotas (sometimes referred to as point of

sale or POS shipments), new business opportunities and/or

management by objectives (MBOs) independent action of the sales

professional and is usually used in conjunction with a base salary.


Sales engineer - Travel, communications, telepresence, compensation

1 The bonus can be based upon the revenue generated within an assigned territory, set up as a

Management by objectives|Management By Objective (MBO) bonus, or a combination of the

two.Mourer, D., 2008, [http://www.thesalesengineer.com/2008/12/02/sale

s-engineer-mbos/ Sales Engineer MBOs], thesalesengineer.com In both cases a sales

engineer will make a base salary that is proportionally higher than their sales

representative counterparts, and significantly more than the traditional engineers in an organization.


Teleology - Business ethics

1 Businessmen commonly think in terms of purposeful action as in, for

example, management by objectives. Teleological analysis of business

ethics leads to consideration of the full range of Stakeholder (corporate)|

stakeholders in any business decision, including the management,

the staff, the customers, the shareholders, the country, humanity

and the environment.https://store.theartofservice.com/the-management-by-objectives-toolkit.html

Work systems - Work system framework

1 'Technologies' include tools (such as cell phones, projectors, spreadsheet

software, and automobiles) and techniques (such as management by objectives, optimization, and remote

tracking) that work system participants use while doing their

work.


Antipattern - Organizational

1 *Management by objectives: Management by numbers, focus

exclusively on quantitative management criteria, when these are

non-essential or cost too much to acquire


Sales Incentive Plan - Sales

1 Sales metrics used in an SIP are typically in the form of sales quotas (sometimes referred to as point of

sale or POS shipments), new business opportunities and/or

management by objectives (MBOs) independent action of the sales

professional and is usually used in conjunction with a base salary.


Critical Success Factor - Relation to Key Performance Indicator

1 KPIs, on the other hand, are measures that quantify Management

by objectives|management objectives, along with a target or

threshold, and enable the measurement of strategic

performance.


Performance-linked incentives - Method of calculating PLI

1 PLI, by virtue of being sanctified in the employment contract, is paid for

objective, measurable and visible results. Management by objectives

is generally used to define the output which determines the payment of

PLI. Since PLI is paid for the results and not merely for the efforts, the objects should be chosen to reflect those activities whose results are

visible immediately after the effort.https://store.theartofservice.com/the-management-by-objectives-toolkit.html

Strategy Markup Language

1 Performance management and management by objectives (MBO) are supported in a highly scalable manner by an open, machine-readable standard like StratML, thereby enabling the realization of network effects as well as interoperability among proliferating

stovepipeOrganizational Stovepipe - stovepipe (organisation) dashboardsDashboard (management

information systems)|Management Information Systems DashboardDashboard (business)|Business Dashboard

reporting performance indicators to various Stakeholder (corporate)|stakeholder

groups.[http://www.usa.gov/Contact/Engagement/Dashboards.shtml Performance dashboards] listed on USA.gov


National Response Framework - NRF five key principles

1 'Scalable, flexible, and adaptable operational capabilities' are implemented as incidents change in size, scope, and complexity, so

that the response to an incident or complex of incidents adapts to meet the requirements under ICS/NIMS management by objectives. The ICS/NIMS resources of various formally

defined resource types are requested, assigned and deployed as needed, then demobilized when available and incident

deployment is not longer necessary.


National Response Framework - Historical context

1 In their parallel command structure to ICS/NIMS under national

coordination, these military assets support the operations of ICS/NIMS

civilian resources in a given incident scenario under management by

objectives.NRF Core, p


Australasian Inter-Service Incident Management System

1 AIIMS was first developed in the 1980s as a derivative of the United States’ NIIMS, and is based on the

principles of management by objectives, functional management

and span of control


Film producer - Clarification of the Modern Term

1 Because of these dynamics it is imperative that all involved

producers agree on management by objectives|production standards right

from the start. It is said that negligence in that matter can lead to

a domino effect.


The Functions of the Executive - Legacy

1 Barnard's book also anticipated In Search of Excellence by Tom Peters

and Robert H. Waterman, Jr., the concept of management by

objectives that Peter Drucker popularized, the two-factor theory of

Frederick Herzberg, and Maslow's hierarchy of needs.


William James Reddin - Personal life and foundations of his philosophy

1 Reddin was a chef as well as wine connoisseur and students found

themselves debating the concept of Reddin’s 3D Theory, and

Management by Objectives (MbO) over bottles of wonderful wines and

gourmet dinners many a late night.Business guru was best selling author, Gregory Dole, National Post,

1999https://store.theartofservice.com/the-management-by-objectives-toolkit.html

William James Reddin - Peter Drucker

1 Bill Reddin’s Model of Managerial Effectiveness is a practical

application of Peter Drucker’s (1909–2005) theories of Management by

Objectives. Drucker coined the concept of knowledge workers and

the overarching emphasis on effectiveness especially among the executive strata of an organization

by being objective oriented.Drucker, Peter F., Concept of the Corporation,

(1983).



1 In Drucker’s 1954 book The Practice of Management Drucker introduced the ideas around 'Management by Objectives' '(MbO)'. A perceptive

observer of behavior, Drucker recognized that in the daily churn of work, employees become so focused on the job at-hand they forget why they're doing it. Drucker called this

the activity trap and proposed Management by Objectives as a way

to avoid it.



1 Reddin put forward that effectiveness of knowledge workers can be measured by looking

at the position held by the manager and the demanded impact of that role: what outputs are

required.Reddin, WJ, The Output Oriented Organization Both the idea of effectiveness, and its demand expectations and measuring outputs

influenced Reddin’s thinking and publications specifically in Effective Management by

Objectives, Managerial Effectiveness, and the training material and diagnostic tests that he

developed


William James Reddin - Author and Main Works

1 * 1974: Management By Objectives for Irish Managers, with P. Kehoe, Mount Salus Press

Ltd, Dublin.


Producer (film) - Clarification of term

1 Because of these dynamics, all involved producers must agree on

management by objectives|production standards from the start


Teleological - Business ethics

1 Business people commonly think in terms of purposeful action as in, for

example, management by objectives. Teleological analysis of business

ethics leads to consideration of the full range of Stakeholder (corporate)|

stakeholders in any business decision, including the management,

the staff, the customers, the shareholders, the country, humanity

and the environment.https://store.theartofservice.com/the-management-by-objectives-toolkit.html

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management by objectives

Documents

new public management

group management theories

objectives mbos

objectives method

objectives principles

effective supervisor

driver of productivity

consumer orientation