Management By Objectives

Need to agree objectives for each worker

This can increase communication

Can increase motivation as subordinates know what they need to achieve

Can help to identify training needs

If workers meet goals can allow them to achieve self actualisation needs (Maslow)

It can also cause problems

Some workers may be threatened by the target setting experience – managers can set targets which can be perceived as unachievable

Needs commitment from everyone in the organisation

Objectives may become outdated due to changes in the business environment

Druckers theory of management

Identified that managers should:

- Identify and agree targets for achievement with employees

- Agree on the level of support needed to achieve the targets

- Evaluate how well the objectives were met