A clarification of the goal setting and appraisal processes in MBO

Under the guise of Management by Objectives, "goal setting" and "performance appraisal" have assumed many different shapes and purposes. To clarify the concept of MBO, this review examines the writings of leading MBO experts, extracts those elements common to their respective definitions of goal setting and performance appraisal, and joins them into a single definition of MBO.     

Studies in MBO effectiveness.

Management by objectives (MBO) is a popular management approach the efficacy of which has been seriously questioned recently. I have analyzed 185 studies for the effects of MBO on employee productivity and/or job satisfaction. Research support for MBO was found to be inversely related to the degree of research design sophistication. Although the five well-controlled experiments leaned toward finding MBO to be ineffective, it appears a contingency approach to MBO is more appropriate than a definitive affirmation or rejection of MBO effectiveness.     

MBO and goal directedness in a hospital context.

In this article, we examine the attempt of two hospitals to implement management by objectives (MBO) as a means of improving organizational planning and control. Our conclusion is that, as a goal-directed form of management technology, MBO may lead to dysfunctional decision making at the institutional level within organizations, especially those facing complex, dynamic environments. However, if viewed as a philosophy of management administered at the sub-unit level, MBO may serve as a catalytic agent for encouraging decentralized decision making and performance evaluation.     

One community hospital--2000 AD

The hospital with which the author has been associated for more 40 years is undergoing the most dramatic changes in its century of existence. These changes have been added to a catalog of past changes and speak to changes that are yet to come. The author describes the process by which this community hospital, and by inference others, has reached its present status and suggests what it may look like in the future.     

国有饭店管理层收购的实证分析--以浙江开元旅业集团为例

本文在分析MBO对国有饭店改革借鉴意义的基础上,通过浙江开元旅业集团MBO的案例分析,指出MBO是饭店业国有资本从竞争性领域中退出的重要手段和新突破,但在实践中需要规范,加强监管,防止创新过程中出现新问题.     

Improving MBO

This article discusses the use of applied behavior analysis procedures to improve the effectiveness of Management by Objectives (MBO) programs utilized in organizational settings. A review of past MBO research using objective outcome measures as dependent variables is presented. Applied behavior analysis procedures and behavioral objective settings are discussed in terms of their contributing value to MBO programs.     

A view of MBO in today's management environment

The evolution of management practice would appear to have been conditioned by the successive embraces of a whole range of management movements—starting with the scientific management movement of F W Taylor through to the social science movement which is prominent today. In the 1960's the one that caught the imagination of many managers was the management by objectives movement. A characteristic of all of these movements is that they rarely seem able to sustain the promise of their initial impact because they are essentially bosses' movements rather than popular movements. The ideology of MBO does however come close to that of a genuine social movement if only it is interpreted and applied correctly. The convergence of MBO and the Organisation Development movement gives promise that together they will be seen as an acceptable response to the changing expectations and values of the participants in today's large and complex businesses.     

A look at major planning methods: development, implementation, strengths and limitations

The purpose of this paper is to prepare an overview of planning as it is carried out in an organizational setting. The format utilized will be to examine the planning process in the context of three of the most popular planning models; management by objectives (MBO), program evaluation and review technique (PERT), and planning— programming—budgeting system (PPBS). Each of these models will be discussed in terms of the reasons for its development, the mechanics of implementing the model, the strengths of the model, and its basic limitations.     

The new production theory for health care through clinical reengineering: a study of clinical guidelines--Part II

In Part I of this two-part article, in the December 1994 issue of the journal, the author discussed the manufacturing theories of Peter Drucker in terms of their applicability for the health care field. He concluded that Drucker's four principles and practices of manufacturing--statistical quality control, manufacturing accounting, modular organization, and systems approach--do have application to the health care system. Clinical guidelines, a variation on the Drucker theory, are a specific example of the manufacturing process in health. The performance to date of some guidelines and their implications for the health care reform debate are discussed in Part II of the article.     

Make or buy? That’s the question!

The author discusses the question if and in which HR processes, tools or programs the implementation of an internal coach pool makes sense or where companies should continue to buy this service from the external market. For this purpose the article introduces a definition of internal Coaching. The central concept of this outline is a blueprint of an offering of internal or external coaching. The author presents a generic model for the analyzing the risks of such a project, which increases the probability of a decision which leads in the right direction. The author concludes that internal coaching makes sense in specific settings e.g. in order to ensure the ROI of learning opportunities. If this however in every situation has to be called “Coaching” should be discussed in the context of another essay.     

Setting operational goals for corporate social responsibility

In this article the author argues that more formality in social responsibility planning efforts is a concept which is extremely pertinent in today's conditions. Rewards will accrue to the organization that can move beyond aesthetic objectives and achieve operationality in social responsibility goal setting. This requires, basically, the application of techniques that have proved to be successful in MBO programs. By translating broadly stated social objectives into goals that are clear, concise, time related and cost related, management will inject an increased measure of integrity into its planning process, improve social responsibility programs, assure future successes in the social performance arena, facilitate the appraisal of management personnel, and enhance the organization's credibility with its multiple publics. Positive benefits will flow to the organization, its immediate publics, and to the society at large as a consequence of operational planning methods as described herein.     

Variations in Concepts of "Susceptibility" in Risk Assessment

The Food Quality Protection Act and the 1996 amendments to the Safe Drinking Water Act are two of the most recent examples of legislation calling for protection of susceptible subpopulations. As regulatory deadlines draw nearer, controversies in scientific and policy arenas increase about incorporating susceptibility in risk assessment. The previously accepted working definition of "susceptibility" has already been called into question. Part of the controversy results from different disciplines conceiving of susceptibility in different ways. Understanding the conceptual differences embodied within definitions can provide a basis on which a revised working definition may be developed across disciplines. The purposes of this article are to describe the varying definitions of susceptibility, discuss the differing concepts incorporated in the definitions, and recommend ways in which susceptibility may be defined and framed to meet current risk assessment needs. The present analysis of definitions from the fields of ecology, biology, engineering, medicine, epidemiology, and toxicology revealed different emphases that relate to the underlying perspectives and methods of each field. It is likely that susceptibility will need to be formally defined for public policy purposes, but until that time, the use of more informal communication and decision-making processes is suggested to develop and utilize a new working consensus on the definition of susceptibility.     

The contribution: Case study and teaching note

Huntington University has depended on its tuition for most of its operations and thus was not prepared for the gift it was about to receive. After considerable discussion at the Board of Visitors meeting of Huntington's School of Management about the importance of ethics in the curriculum, one retiring corporate head, Dan Jordan, challenged the school to make a significant effort to assume responsibility for the ethical qualities of its graduates. Jordan offered the school its largest contribution ever—which he restricted to the area of ethics. The dean of the college of management, Peter McElroy, now faced an enviable problem: how to spend the income from this gift in a way that conformed to the wishes of the donor and best served the needs of his college.     

Auftragsklärung: Interventionen auf dem Wege zur Konstituierung eines Beratungssystems*

The author demonstrates basing on a case study, that the development of a consultation system is a process that requires time and patience of everyone involved. Not a fast decided definition of a consultation method with the corresponding setting is the first step but a clarification of the request. That is what the author is pleading for a phase of detailed analysis with the potential client.     

Strategic planning for commodities and specialties: A strategic industry study based on the example of the chemical industry

The objective of this paper is to identify general factors which are important to successful corporate strategic planning and to provide guidelines to requirements for successful entry into the specialty materials/products business. The study is based on the author's experience in the highly specialized Swiss chemical industry. While the concept of commodities/ specialties has been developed most intensively in the chemical industry, it has overall validity for all industries and services and the author gives many practical hints on strategic management.     

Road transport and the environment

The past few years have been remarkable for the growing awareness of the importance of preserving and improving the environment. In terms of the impact of transport activities on environmental quality, the commercial vehicle in particular has been singled out for critical attention. As a target for environmental criticism the lorry is a victim of its own success. It now carries 85 per cent of the goods tonnage in the U.K. and undertakes 67 per cent of the ton-mileage. These figures are indicative of the scope of the impact of the lorry on the environment. In this article the author considers the implications of this impact. He argues that to enable lorries to perform their important economic function in the most efficient way with the least possible damage to the environment will require co-ordinated effort from all interested parties.     

Strategic planning in small and medium-sized companies

In analysing the characteristics of strategic planning applications in different types and sizes of companies, confusion often arises not because of the application but because of the definitions utilized. This paper analyses the use of strategic planning concepts in small and medium-sized companies in Holland. As the author points out, in this context the definition of small and medium-sized is determined by five strategically relevant criteria which are distinctive. The author points out, however, that whilst these criteria are distinctive of the category of small and medium-sized companies surveyed, they do not all have to occur at the same time; the higher the number that do occur, the more typical the company. Whilst this paper does not, as the author admits, represent the result of a systematic survey, the authors wide experience as a consultant is in itself a valuable background to his analysis. Indeed, the findings stated in this paper represent an analysis of the strategic planning practises of some 75–100 companies. Therefore, in view of the detailed criteria utilized and the number of companies analysed the results represent an important addition to our knowledge of the application of strategic planning.     

The delusion of intrapreneurship

The purpose of this article is to provide some insight into the limitations in the concept of intrapreneurship, the definition of an ’intrapreneur‘ being an entrepreneur operating within a large comany rather than in his own business. The author believes that intrapreneurship is not a formula for successful innovation in large companies as a bureaucratic system cannot provide the rewards and the personal autonomy which the true entrepreneur requires.     

Corporate planning and management by objectives

Management by Objectives seeks to integrate the company's objectives for profit and growth with the personal goals and satisfaction of managers. The system requires a review of company objectives and an attempt to translate these into key objectives and performance standards to which individual managers are committed. MBO dependes for its success on the existence of a company environment in which the individual can grow and provides a basis for harnessing the human resources of the organization in the achievement of company objectives.     

Managing learning and developing management

Dr Alan Mumford is best known in the UK for his pioneering work on managerial learning and board-level development in the corporate sector. After his early career in the construction industry, he worked as an internal management development adviser to a number of UK companies before leaving fifteen years ago to join International Management Centres Europe as a professor. Alan continues to advise as an independent consultant and to devote time to writing. A prolific author, his classic text Management Development: Strategies for Action recently appeared in its fourth edition published by the Institute of Personnel and Development, and his reflections on board-level and senior executive development in Learning at the Top (McGraw-Hill, 1995). Of greatest renown is his collaboration with Dr Peter Honey on developing the Learning Styles Questionnaire and the Manual of Learning Styles (Honey, 3rd edn, 1992) which have become the most frequently used diagnostic and development tools on UK corporate management development programnles. Jean Woodall interviewed Alan at his home in London.

Jean Woodall is Professor of Human Resource Development at Kingston University.