Subject : Management & Organizational Behaviour
Code : BMO 1102
Assessment 3 : Research Essay
Question : Define management by objectives and list the four elements
of this type of goal setting. Next, discuss three problems
associated with management by objectives. Can this
management technique be applied to your approach to this
subject (BMO 1102)? If so, how?
Name : Darwis Soesanto
VU Student Number : 3712716
Tutorial Group : Tutorial 4
Date of Submission : 21st September 2005
Lecturer Name : Ms. Greeja De Silva
Table of Contents
Table of Contents 1
Introduction 2
Discussion
Four Elements of Management by Objectives 3
Three Problems Faced 4
Management by objective and its application 4
Conclusion 5
Introduction
How do managers plan? Do they must plan effectively? Do they plan alone? To understand
these we must first understand what planning is.
Planning is:
1. Way of forecasting and predicting what will happen in the future to achieve goals and to
cope with problems.
2. A process that involves defining the organization goals, establishing an overall strategy
for achieving those goals, and developing a comprehensive set of plans to integrate and
coordinate organizational work (Robbins et al. 2003).
3. The process by which managers establish goals and define the methods by which these
goals and action statements (Dunham 1989)
4. The process of coping with uncertainty by formulating future courses of action to
achieve specified results (Kreitner 2004).
There are two ways in setting organizational goals, which are traditional goal settings and
management by objectives.
Management by objectives is:
1. A method where managers and their employees define the goals together, how to
achieve the goals, and monitor the process.
2. A management system in which specific performance goals are jointly determined by
employees and their managers, progress toward accomplishing those goals is periodically
reviewed, and rewards are allocated on the basis of the progress (Robbins et al. 2003).
3. A method whereby managers and employees define goals for every department, project,
and person and use them to monitor subsequent performance (Daft & Marci 2001).
4. A motivational technique in which the manager an employee work together to set
employee goals (Kuzuhara 2002).
5. A comprehensive management system based on measurable and anticipatively set
objectives (Kreitner 2004).
6. A management technique increasing employee involvement in the planning and
controlling activities (Dunham 1989).
This essay will discuss about the management by objectives, its elements, problems faced,
and its application in this subject.
Discussion
Four Elements of Management by Objectives
The first element of management by objectives is setting goal, which is the most important
in management by objectives. The main point of goal setting is to have mutualagreement
