Key Features:
- No of Pages: 52
- No of Chapters: 03
Introduction:
Abstract
During the early period of Industrial revolution traditional management concept was more pronounced when the entrepreneurs regarded their employees as part of their “tools” to accomplish their objectives. This attitude led to employee’s resentment of factory conditions, dismissals and other forms of punishment.
However, the growth in the size and the complex attitude nature of present day organization as well as the separation of ownership from management have together with other environmental pressure for change, necessities a shift of emphasis form traditional to a modern concept (Personnel – minded concept) which takes the employees and their individual needs into considerations. This development led to the introduction of MBO.
This concept though widely written and spoken about, is yet to find its full place in Nigeria Business Management in terms of Applications.
This work therefore is aimed at researching into the feasibility or applicability of the concept in our business management with a focus on commercialized bank.
The work took a look into MBO and shows that is a process by which managers and their subordinates participates jointly in setting goals, activities and target dates as well as evaluation of performance as it relates to establishment objects.
In conducting research, A sample of 138, respondents (managers of Standard Trust Bank) were interviewed using questionnaires and oral interviews. These respondent were selected using random sample techniques. Data obtained were analyzed using sample percentage methods, tables and charts.
Standard Trust Bank Ltd, a commercial Bank was used as case study, it was found that the organization embraces the ideals of MBO, by observing and applying to a substantial extent, most of the essential elements of the concept which include, management support of the concept, favourable structure, joint goal determination.
Goals made actionable, periodic joint review of accomplishment continued guide of subordinates, effective education and communication of the concept, reward based on contribution etc.
These therefore, prove the applicability of the concept in service organization.
The work also found out that the organization still has room for improvement as it was found wanting in certain areas of applicability of the concept, example, proper education of the lower level managers on the ideals and process of MBO, making goals verifiable etc. Recommendations on full and successful application were also put forward emphasizing proper planning, education, communications, setting of verifiable goals, performance appraisal and reward based on accomplishment.
Table of Content
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Scope and Limitations of the Study
Reference
CHAPTER TWO: LITERATURE REVIEW
2.1 Review of Related Literature
2.2 Origin of the Study
2.3 The Process of (MBO)
2.4 Benefits of (MBO)
2.5 Weakness of MBO and Possible Solutions
CHAPTER THREE: CONCLUSION AND RECOMMENDATION
3.1 Summary of Findings
3.2 Conclusions
3.3 Recommendations
References
Introduction
1.1 BACKGROUND OF THE STUDY:
Depending on the stand point from which it is viewed, management by objective (MBO) can be termed a technique a system, a style and a philosophy of management.
This concept of MBO which integrates management functions of planning and controlling is designed to overcome the limitations of traditional concept of management.
The traditional concept can be compared to Doughlas Mc Gregor’s “theory X” assumptions which he contrasted form “theory Y” assumptions. McGregor, in stating the various assumptions of theory X and theory Y, saw the former as based on the traditional view or back group of direction and control which according to McGregor’s explanation presupposes that.
(i) Management is to organize the elements of productive enterprise, money, machines, men, materials etc for economic ends.
(ii) Management is to direct the workforce, controlling their actions and modifying their behaviour to fit the need of the firm.
(iii) Without the active intervention by management, people would be passive or resistant to organization’s needs. They most therefore be persuaded, punished and controlled.
(iv) The average person works as little as possible.
(v) The average person lacks ambition, dislikes, responsibility prefers to be led.
(vi) He is inherently self centered, indifferent to organizational needs.
(vii) He is by nature resistant to change.
(viii) He is gullible not bright, the ready dupe of the chalaton and the demagogue.
McGregor argues that such behaviour is often the consequence of management philosophies, practice and policies: workers are encouraged to be dull, lazy and apathetic and to shun responsibility because the organization policies, procedure and supervisory methods bring about this kind of behaviour, close supervision encourages workers to avoid responsibility. Tight controls encourages them to play games to beat the system, coercive management breads resistance.
The traditional concept gained its ground before and during the boom years when demand outpaced supply when surplus manpower and less militant union activities exist, and when paid employment was more feudal in nature with emphasis on detailed control of the servant by the master.
But changing conditions due to increased union activities shortages of skilled manpower, more government intervention, more literate workforce and other environmental pressure for change have made authority and direct control farless effective than it used to be in the earlier days.
McGregor suggest that the situation is no longer one of dependence by the worker or manager on the firm for his survival only, but of inter-dependence between the firm and the worker.
He further suggest the development of a new theory on which to base actions which are of appropriate to modern conditions: to use his metaphor we must stop trying to make water run uptill. He identified this needed new “theory Y”. With this leadership then becomes a process of dealing with the people in their complexity, creating opportunities, releasing potentials, removing obstacles encouraging growth and providing guidance.
These were the ideals Peter F. Drucker tried to promote when he came up with the concept of MBO which in line with “theory Y” is a personal minded concept of management.
Drucker introduced the concept as a principle of management that will give full scope to individual strength and responsibility and at the same time give common direction of vision and effort, establish team work and harmonize the goals of individuals with the common goal of the organization. It is based therefore on the elementary premise that unless you know what results you want to achieved, you will not achieve them. The concept is also meant to motivate workers to accomplish the set goals willingly. According to Nwachukwu (1988:192) “employees are also motivated where management integrates their goals into the organizational goals through MBO”.
Management by objective (MBO) like many other management approaches and techniques to considered a revolutionary concept, it has received rapid and wide acceptance by theorists and practitioners alike.
Misshauck (1986:348) state that “perhaps the most widely utilized programme concept designed to involve employees more actively in the goal-getting process is management by objectives (MBO).
The concept which originates in the early 1950’s was first discussed by Peter Drucker, credited with being the father of MBO in his book titled practice of management.
Research has shown that organizational MBO programmes indicate that he adoption of this approach improves managerial performance, managerial attitude and organizational planning and control.
It is widely practiced especially in developed countries. Ordiome popularized the concepts in America and Humble carried it to Britain.
However, since the introduction of the concept in Nigeria, its wide application by organization has always been in question. Although the concept has been widely written on and mangers who are aware of the concept are yearning for its application to effect full changes in organizations, the concept is yet to find its footing in Nigeria business organizations as well as other third world countries.
It is in a bid to satisfy this yearning that this work will research into the applicability of the concept in an organization using standard Trust Bank as a case study.
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