Management by Objectives 13 / 19

Drucker stated that organisational objectives should be agreed for the following areas:

  1. Profitability

  2. Managerial performance

  3. Worker performance

  4. Public responsibility

The process includes:

  1. Setting objectives for the organisation.

  2. Organising the work.

An effective process of Management by Objectives involves the following:

  1. Targets set are measurable

  2. There is continual review of results.

  3. The staff sets objectives jointly with managers.

  4. Goals are stated in behavioural terms.

Gareth Morgan has identified different perspectives through which organisations can be looked at such as the organisations as machine perspective, organisations as organisms and organisations as cultures.

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