Management by Objectives: Is it still used?
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Peter Drucker introduced Management by Objectives (MBO) in 1954. MBO is now over 60 years old and some modern theorists argue that its use is no longer a best practice in today's global technologically mediated workplace. For example, William Roth (2009) argues that MBO deteriorates creativity, teamwork, and the flexibility to react in changing business situations.
Consider whether MBO continues to be a viable management practice. Be sure to include specific business examples that support your position.
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Roth, W. F. (2009, April 29). Is management by objectives obsolete? Global Business and Organizational Excellence, 28(4), 36-43.
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Solution Summary
This brief solution discusses if management by objectives is still used, and in what companies. Provides examples and references.
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Management by objectives is still a viable management practice. It is important for employees to reflect and make a list of their intended actions. It is not enough to simply respond to items as they cross one's desk. Drucker labeled this motion as "the activity trap" (The Economist, 2009). If a manager falls into this trap he or she becomes so involved in putting out fires and reacting to situations that he or she fails to focus on the long term needs and goals of the organization. ...
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