Critical Analysis of Management by Objective in Indian Companies

Abstract

Organizations are focused, goal-oriented groups of persons. Therefore, goals or objectives should provide the focus for each activity. Each job in the organization must be directed towards the objectives of the organizations as a whole and the contribution of every individual must be judged by the contribution made towards the accomplishment of these objectives. The goals of every manager should be defined by the contribution he has to make to success of the organization. This can be done through management by objectives. This concept was introduced by Peter F. Drucker in 1954 in his popular book ‘The practice of Management'. Originally, conceived as a technique of participation and joint goal setting, it has become a distinct philosophy and an approach to management because it applies to every organization and to every manager.

In this research paper, an attempt is made to analyze Management by Objectives (MBO) in selected Indian companies. Out of the 10 notable companies implementing MBO, two companies are randomly selected for the analysis. The paper begins with the introduction which is then followed by a comprehensive elucidation of MBO. In which, first of all the meaning and definitions of MBO are described. Later, the MBO process is discussed and advantages of MBO are outlined. Indian scenario of management by objectives is also discussed here. This is followed by the analysis of MBO in selected Indian companies. Then the limitations of MBO are investigated. Finally, the conclusion is drawn from the detailed study and analysis.