Management by Objective

 We know that Management is a universal approach that is used to perform the function of business like Production, demand forecasting in an effective, efficient, and economical way to achieve a predefined goal of the organization. There are many models of Management. These are participative Management, database Management, Management by objectives, and Management by exception, and so on. Every model has its unique feature function and application. Among all Management by objective is also an important model that is used by multinational companies, large-scale companies in a particular situation to achieve a particular goal.

There are many objectives before organizations. These objectives are Survival, sales revenue maximization, and profit maximization. The process in which Management is done according to the goal of the organization this process is called Management by objectives.

In other words, we can say that the process in which the Manager makes policy, rules, regulations, and laws to achieve the predefined goal of organizations this process is called Management by objectives.

In other words, we can say that the process in which planning, organizing, staffing, directing, and controlling is done to achieve the predefined goal of an organization this process is called Management by objectives.

Nature- There are many natures of Management by objectives. These natures are as below

1. It is part of Management.

2. It is a formal process of Management.

3. It is used to achieve a particular type of goal.

4. It is used for a fix short or middle period.

5. It is made by the top level of Management.

6. It is a scientific approach.

7. It is a systematic approach.

8. It is a universal approach.

9. It is a goal-oriented approach.

10. It is used by large-scale companies and multinational companies.

Scope of Management by Objective-

The scope of Management by Objective is very wide. It helps the organization to achieve any particular goal in a particular period. It also helps to perform its function in an effective, efficient, and economical way in the recession period to achieve its goal. Besides the above, there are many other scopes of Management by Objectives. These scopes are as below

1. It improves the performance of individuals, teams, groups, and departments.

2. It helps to perform the function of organizations and make them more effective, efficient, and economical.

3. It helps to measure the performance of human resource forces.

4. It helps to increase the transaction of the organization.

5. It helps to increase the profit of the organization.

6. It helps to achieve a fixed goal in a fixed period.

7. It makes the environment of the organization more comparative.

8. It improves the relationship between Management and employees.

9. It motivates human resource forces towards goal 

10. It helps to optimum utilization of human resource force.

Step of Management by Objectives-

There are many steps of Management by Objectives. These steps are as below

1. To decide the objective- It is the first step of Management by Objectives. There are many objectives before an organization. These objectives are Survival, Sales revenue maximization Profit maximization, and so on. Among all organizations choose one of the objectives that they want to achieve.

2. To make plan- It is the second step of Management by objective. Planning is the first and fundamental function of a Manager. According to the objective Manager makes a plan to achieve this objective in a fixed period.

3. To implement the plan- A plan is the combination of policy, rules, regulations, and law. Manager implements plan according to predefined terms condition to perform its function in an effective efficient way.

4. To check the performance- It is also an important function of Management by Objective. After implementing the plan Manager check the performance of the organization and compare the performance to the predefined performance of the organization.

5. To remove drawbacks- If he finds out any drawbacks in comparing process they remove it and ensure to achieve objectives. If he does not find any drawbacks they continue the plan.

There are many advantage of management by objective. These advantages are as below:

1. It is a result oriented approach. So it makes human resource force towards goal or objectives.

2. Every employee of organisation knows what is the role they want to perform to achieve goal. So every employee provides their best to achieve the goal.

3. It measures the performance of human resource force according to predefined expectation at daily, weekly, monthly basis. So the performance of employee become better.

4. It awares every employee of organisation towards goal, role, function, contribution. So employees feel proud and want to contribute their best to achieve the goal.

5. It improves communication between management and human resource force. So the environment of organisation becomes more energetic. 

Disadvantage:

There are many disadvantage of management by objective. These disadvantages are as below:

1. It is a participative approach. So if any person does not participate his best it is not possible to achieve objective.

2. It puts maximum pressure in employees. So many employees do not provide their best so it is less chance to achieve goal.

3. It is a time consuming approach. So it requires more time to set goal, make plan, implement plan and measures the performance of employees. If any organisation work in many sector and they have less time they may not use it 

4. It is a part of management. So if management does not get success how it's parts get success.

5. It is short term and middle term approach. It is not long term approach whereas most of company focus on long term goal.

6. It depend other factors of management like forecasting, budgeting and planning. If any factor does not support management by objective may not get success 

7. It requires high class knowledge, talent, skill, vision and forecasting. If any top level manager who has no such type of quality management by objective may not success.