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Operational planning…
23Feb2008 Filed under: Management, Organizations, Planning, Strategic planning Author: Daryoosh
Part D:
Although Peter Drucker is credited with being the father of MBO, it was George Odiorne who popularized MBO with his statement of its six major premises.
The specific goals that result from the use of MBO in the strategic planning process are seen to benefit both the organization and the individual through improved communication, cleared understanding, and increased motivation and commitment.
Central to MBO, is the objective. It should be stated in specific, quantitative terms and should be focused on output rather than activity. Objectives should be coordinated across departments and programs, but dual accountability should be kept to a minimum.
Finally, objectives should be written statements, and manager and subordinate should agree on the relative importance of each objective.
Success with MBO seems to be tied to the following factors:
1. Performance-based rewards
2. Participation in goal setting
3. Frequent feedback
4. MBO training for managers
5. Top management commitment to the system.
Research indicates that MBO is widely viewed as an effective management technique.
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Bob Embry
February 26th, 2008 at 3:59 am
Peter Drucker wrote of objectives in several senses: Those that are derived from a mission (not mission statement), management by objectives and self control (not MBO), growth objectives developed by top management, and there’s a chapter “Toward the Next Economics and other Essays” titled What Results Should You Expect? — A user’s guide to MBO. The specification listed above aren’t a part of Drucker’s written work. Drucker’s writings on these objective first appeared in “The Practice of Management.”
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Daryoosh
March 7th, 2008 at 1:59 pm
Thanks for details Bob, but you know that a mission uses in whole of organization to clear the objectives, but in MBO, it must stated to be effective and efficient, so where did I say “mission isn’t true in MBO and it is mission statement?”
I don’t write about Drucker’s thesis and MBO form his sight, I just descript it simple and in my viewpoint to be useful for all.
Finally, you can find more about MBO in “Management by Alpin”.
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