Management by Objective - Explained

Management by objective, introduced by Peter Drucker in 1954, involves collaboration between employees and managers to set and achieve goals. This approach aligns personal and organizational objectives, enhancing employee understanding and buy-in. It benefits the management process by increasing loyalty and efficiency. The process includes setting goals, creating action plans, and evaluating performance using quantifiable metrics. Adjustments are made based on results, ensuring continuous improvement.

Who is credited with developing the concept of Management by Objective?

• Henry Fayol

• Frederick Taylor

• Peter Drucker

• Elton Mayo

What is a key benefit of Management by Objective for employees?

• Increased salary

• More vacation time

• Greater understanding of expectations

• Less responsibility

How does Management by Objective benefit managers?

• It eliminates the need for employee input

• It reduces their workload

• It makes them more efficient and effective

• It allows them to avoid setting goals

What is essential for evaluating performance in Management by Objective?

• Managerial intuition

• Subjective opinions

• Quantifiable metrics

• Employee surveys

What can be modified based on performance appraisals in Management by Objective?

• Office locations

• Goals and objectives

• Company policies

• Employee salaries