What is Management By Objectives?
The essence of Peter Drucker ’s basic principle: Management By Objectives is to determine joint objectives and to provide feedback on the results. Setting challenging but attainable objectives promote motivation and empowerment of employees. By increasing commitment, managers are given the opportunity to focus on new ideas and innovations that contribute to the development and objectives of organizations.
Objectives of the Management are as Follows
Coordination is an essential function of management. It allows for ensuring that the work done by the individual elements of the firm are combined for the furtherance of the collective objective of the firm. Most management principles aim at ensuring this function and facilitating coordination.
- Ensure Efficiency
All management principles aimed at ensuring the overall efficiency of the business. Management principles provide guidelines as to how tasks are to be completed for increased efficiency.
- Ensure Compliance to the Plan and Controlling:
Management principles such as centralization and decentralization etc ensure that plans required for the firm are formulated at different levels with different levels of importance. Then it also facilitates ensuring compliance with the plan by controlling through principles such as Authority and Responsibility, Discipline, etc.
- Discipline and Morale
The management maintains the discipline and it boosts the morale of the employee by applying the principles of decentralization and delegation of authority. It motivates the employees through different incentives. It helps in creating and maintaining a better work environment.
Apart from these objectives, there are more than are already highlighted in the preceding section of the importance of management principles. Management principles become important in those terms especially because they aim to ensure such things. For instance, management principles are important in ensuring optimum utilization of resources because management principles invariably consider such optimum utilization as an essential objective.
- Things to Know About Ripple Exchange & Trading - January 17, 2021
- ERP – General Ledger and Accounting Management in ERP - December 19, 2020
- How Much Does an ERP System Cost? 2021 Pricing Guide - December 18, 2020