Steps for improving the prospects of Management by Objectives

Steps for Improving the Prospects Or Effectiveness of Management by Objectives Application

1. Top Management Support and Commitment
Management by Objectives should be used by a strong power and authority structure, i.e. by the top management, so that “planning for work” may be rightly shifted to “planning for goals or results”. David Hampton says, “If you want to make Management by Objectives work, you must integrate it into the real systems of work and influence.” Management by Objectives must be considered a way of managing and not to an addition to the managerial job. Harold Koontz points out. “An effective programme of managing by objectives must be woven into an entire pattern and style of managing. It cannot work as a separate technique standing alone.” In this whole content, top management support and commitment to management by objectives programme is essential and vital.

2. Other Important Steps

• Managers should be given adequate training in management by objectives philosophy and procedures before installing the system. For this purpose, adequate time and resources are required and therefore be arranged.
• Necessary mechanism for making management by objectives programme a success should devised and for this purpose the administrators of management by objectives programme must be endowed with sufficient authority to punish and reward at their own levels.
• Feedback should be made effective the more specific timely the feedback the more positive the effect.
• Employee Participation should be made real and committed by properly motivating them.
• Management by Objectives must be carried all the way down to the first line or supervisory level.
• It should be seen that conflicting objectives are not set at any level and important non-quantifiable objectives are not brushed aside.
• During the course of implementation of management by objectives the required redistribution of powers and status should be seriously considered so as to avoid all kinds of unnecessary infighting and negative conflicts.

Most of the limitations or weaknesses of management by objectives are not of formidable (uncontrollable) nature. Some minor adjustments in attitudes, initiative and determination on the part of the managers may overcome all the difficulties and pitfalls, which come in the way of management by objectives programme. It appears from the widespread discussions and adoption of management of objectives concept in private and public enterprises that it has come to stay in the field of management.

Limitation of Management by Objectives

Limitations of Management by Objectives

In spite of its many advantages, the Management by Objectives has some weaknesses as follows:

1. Unfavourable Attitude of Managers
Some managers have an attitude that the regular attention required of them by Management by Objectives system, draws heavily on their busy time-schedule and is not consistent with their roles. They feel that it is not so effective a way as some other approaches. Some managers view their roles as principally involving policy-making, budget formulation etc.

2. Excessive Paper Work
Management by Objectives programme involves a huge amount of newsletters, instruction booklets, training manuals, questionnaires, performance date, review and appraisal reports to be prepared by the superiors and subordinates. Thus, Management by Objectives is said to have created one more “paper mill” in the organisation added to the already existing large amount of paper work.

3. Problems about Goal Setting
Management by Objectives requires issuance of proper, exhaustive guidelines to goal-setters. However, managers responsible for practicing Management by Objectives do not themselves understand and appreciate a good deal about it, expecially about the concept of self-control and self-direction which is basic to Management by Objectives. Similarly, there are several other difficulties in goal setting:

• Positive and active participation from subordinates is not easily forthcoming.
• Truly verifiable goals are not easy to formalize.
• Empahasis is put on short-range goals, where as long-range goals are avoided, though long-range goals are vital for growth and development of the organisation.
• Goals remain inflexible and rigid. For example, changes desirable in annual budgets are not easily accepted in the middle of the year.
• Over-use of quantitative goals jeopardizes the qualitative aspect which may even more important the quantification is some case.
• Goals tend to take precedence or priority over the people who uses them. Any action is acceptable if it serves in the attainment of goals, without caring of its impact on people. Thus, all these difficulties come in the way of making management by objectives operational in an organisation. Further, managing involves more than goal setting.

4. Time-Consuming Nature of Management by Objectives
Management by Objectives system is time-consuming especially in the early phases of its introduction when employees are unfamiliar with its process. Since managers also have to learn the necessary skills it is commonly estimated that it takes 2 years to take an management by objectives programme working smoothly. A few management by objectives programme working smoothly. A few management by objectives programmes have failed because managers could not spare adequate time needed for its various phases.

5. Difficulties in Making Organizational Changes
Management by Objectives system requires to be integrated with other systems in the organisation, such as budgeting, forecasting, communication, control etc. Sometimes current practices may have to be changed. Thus, greater decentralization may become a necessity. Moreover, some systems may required to be changed, for example, control system, data processing system etc. Managers feel such changes as time-consuming, distributing there “status quo” (or as it is) facilities and difficult in different other ways.

6. Failure to Teach Management by Objectives Philosophy
Management by Objectives as a concept is simple but it is deceptively so. It is much easier to explain this principle than to introduce it to an organsation, especially in a very dynamic and changing environment. Moreover, management by objectives is still building toward achieving a fully institutionalized system of management to be used by the entire key manager. Sometimes managers fail to use objectives as a constructive force, even with the full participation and assistance of their superiors. In order to understand the philosophy of management by objectives, managers have to make themselves professionals.