Business organisation and environment

Table of Contents

1. Topic pack - introduction
2. 1.1 Nature of business activity - notes
3. 1.1 Nature of business activity - questions
4. 1.2 Types of organisation - notes
5. 1.2 Types of organisation - questions
6. 1.3 Organisational objectives - notes
   1. Nature, role and importance of objectives
   2. Changing objectives
   3. Statements - mission and vision
   4. Short versus long-term objectives
   5. Short versus long-term objectives - a further explanation
   6. Management by objectives
   7. Ethical objectives
   8. Corporate social responsibility
7. 1.3 Organisational objectives - questions
8. 1.4 Stakeholders - notes
9. 1.4 Stakeholders - questions
10. 1.5 External environment - notes
11. 1.5 External environment - questions
12. 1.5 External environment - simulations and activities
13. 1.6 Organisational planning tools - notes
14. 1.6 Growth and evolution - notes
15. 1.7 Growth and evolution - questions
16. 1.7 Growth and evolution - simulations and activities
17. 1.6 Change (HL only) - notes
18. 1.9 Globalisation - notes
19. 1.9 Globalisation - questions
20. Print View

Management by objectives

The term, management by objectives, was first popularised by the management theorist, Peter Drucker, in 1954 in his book "The practice of management". It refers to the process of management and employees agreeing on objectives for the organisation. This is intended to ensure that they understand the objectives, feel that they can be achieved and know their part in that process.

Management by Objectives is not without its critics, however. Some management theorists, including W. Edwards Deming, suggested that the MBO process tends to focus employees on the identified objectives at the expense of other requirements, and that the pressure to complete the identified objectives may result in them being performed poorly. Deming suggests that the setting of objectives is less important than the process of leadership.

Management by objectives is often used to help a firm achieve targets. It is generally considered that objectives set in this way need to be what are called 'SMART 'objectives.

SMART objectives

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• SMART objectives