Effective utilization of management by objectives in nigerian companies problems and prospects

Thesis Overview

<p> <b></b></p><p><b><b>INTRODUCTION:</b></b></p><p><b><b></b></b></p><b><b><p><b>1.0 &nbsp; &nbsp; &nbsp;<br></b><b>BACKGROUND OF THE<br>STUDY</b></p><p><b></b></p><b><p>Management needs a lot of tools to be able to<br>administer effectively in the day to day running of the business. Management by<br>objectives is one of such tools. It is a way of getting improved results in<br>managerial action. Management by objectives can be described as a managerial<br>method where by the superior and the subordinate managers in an organization<br>identify major areas of responsibility, in which they will work, set some<br>standards for good or bad performance and the measurement of results against<br>those standards Derek (2005:156).</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Management by objective is also called<br>Managing By Objectives. However, there have been certain individuals who have<br>long placed emphasis on management by objectives and by so doing have given<br>impetus to its development as a system. Management by objectives refers to a<br>structured management technique of setting goals for any organizational unit.</p><p>George S. Odiorne<br>(1981:1) in his book management by objectives defined this concept as “a system<br>of management whereby the superior and subordinate jointly identify objectives,<br>define individual major areas of responsibility in terms of results expected,<br>and use these objectives and expected results as guides for operating the unit<br>and assessing the contribution of each of its member. Besides, Odiorne points<br>out that management by objectives is a “system of management” an overall frame<br>work used to guide the organizational unit and outline its direction. He went<br>further to point out that “the superior and subordinate jointly identify<br>objectives”. In other words, it is a participative management procedure that<br>requires commitment and co-operation. The definition deals with identifying the<br>“results” that are expected. Thus management by objectives concentrates on the<br>output of the organisation evaluating people by assessing their contribution to<br>this output.</p><p>Management by<br>objectives is a strategy where in the management sets specific goals for the<br>employees to accomplish within a fixed time period. Management by objective is<br>a dynamic system which seeks to integrate the company a need to clarify and<br>achieve its profit and growth goals with the managers need to contribute and<br>develop himself. It is a demanding and rewarding style of managing a business.</p><p>&nbsp; Management by objectives can work in any size<br>of organization if the procedures are understood and managers are patient in<br>letting the system set in first. Management by objective is an effective<br>planning, control and development system.</p><p>Management by<br>objective was defined by Koontz and O’Donnell (1968:485) as a technique or<br>system or method of management where by the superior and subordinate managers<br>of an organization agreed on its broad goals, translate these goals into a<br>chain of specific short term goals, defined each individuals major areas of<br>responsibility in terms of result expected, continually reviewed the<br>accomplishment as the sole basis of assessing and rewarding them.</p><p>Management by<br>objectives gives the employee the opportunity to participate in decision<br>making, the limits within these limits. It assumes that the employee has been<br>properly selected and trained, and is informed that the employee will be<br>responsible for achieving the desired results in the organization.</p><p>Organizations are<br>ubiquitous. According to Mullins (2005:256), organizations are designed by<br>people to overcome individual limitations and achieve individually. Hence,<br>organization become a means of survival for the people and exerts an important<br>daily influence on the life of the people and the way they live. The major<br>decider for the survival of any organization is the presence of capable men and<br>women with the right technique to combine the organization resources (man,<br>machine, materials and money) to achieve organization goals.</p><p>It is appropriate<br>to note that management of companies in Nigeria lack sufficient techniques to<br>make them manage effectively. Some of these tools are not used and when used<br>they are not properly utilized. Management by objective is not only a managerial<br>strategy to achieve a well co-ordinated managerial goal, but it is also a<br>popular management technique that cut across or pervade all human activities<br>namely business areas, educational, government, health care and non profit<br>organisation.</p><p>Most of the<br>techniques, system, tools of management are hardly understood resulting in<br>losses and damages to the organisation. Besides, it is the wrong use of<br>technique and unwillingness of top management to utilize the right tool to<br>solve the management problems.</p><p>It is on these<br>trends that the researcher intends to find out the prospect and problems of<br>effective utilization of management by objectives by companies in Nigeria. In<br>order to investigate some of the above problems, one of the leading financial<br>institutions in the country, first Bank of Nigeria Plc Okpara Avenue Enugu has<br>been chosen.</p><p><b>1.1 &nbsp; STATEMENT OF THE<br>PROBLEM</b></p><p><b></b></p><b><p>It is pertinent to<br>note that management of companies in Nigeria. Lack sufficient technique to make<br>them manage well. Some of these tools are not used and when used they are not<br>properly utilized. Management by objective if not only a managerial strategy to<br>achieve a well co-ordinated managerial goals, but it is also a popular<br>management technique that cut across or pervade all human activities namely;<br>business areas, educational, government, health care and non-profit<br>organisation.</p><p>Most of these<br>objectives are hardly understood resulting in losses, breakage’s and on so. The<br>worse are business in the medium range where most banks fall. Most companies<br>hand down objectives to subordinates without adequate explanation, hence<br>failure of management by objectives in such cases. Management by objectives<br>will remove all of these problems mentioned above and subordinates will now<br>formulate objectives, set targets according to their strength and weaknesses,<br>no stoppages, no delays, no losses to the companies. This will help<br>subordinates to formulate realizable goals.</p><p><b>1.2 &nbsp; &nbsp; &nbsp;<br></b><b>OBJECTIVE OF THE<br>STUDY</b></p><p><b></b></p><b><p>The broad<br>objective of the study is to find out the prospects and problems of effective<br>utilization of management by objectives in companies in Nigeria.</p><p>The<br>specific objective of the study includes: –</p><p>1) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To determine problems affecting the effective<br>utilization of management by objectives in an organisation.</p><p>2) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To determine the level of managers commitment to<br>achieving organizational objectives.</p><p>3) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To find out the level of participation of both<br>managers and employees in the setting of goals to be achieved in the<br>organisation.</p><p>4) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To determine whether employees are given<br>appropriate authority and responsibility for achieving the set objective.</p><p>5) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To recommend strategies for effective<br>utilization of management by objectives.</p><p><b>1.3 &nbsp; &nbsp; &nbsp;<br></b><b>RESEARCH<br>QUESTION</b></p><p><b></b></p><b><p>In pursuit<br>of the research objective of the study, the following research questions have<br>been formulated.</p><p>1) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>What are the problems militating against<br>effective utilization of management by objective in an organisation.</p><p>2) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To what extent do both managers and employees<br>participate in the setting of goals to be achieved in the organisation?</p><p>3) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To what extent are employees given appropriate<br>authority and responsibilities for effective management by objective?</p><p>4) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To what extent do motivation determines<br>employee’s performance towards achieving the objectives of the organisation.</p><p>1.4 &nbsp; &nbsp; &nbsp; <b>SIGNIFICANCE OF THE STUDY</b></p><p>Practicing<br>management by objective will make the management of First Bank of Nigeria to be<br>move assertive in their decision making. It will assist the subordinate in<br>First Bank of Nigeria to be able to identify themselves with the objectives of<br>the company and the role they will play.</p><p>It will<br>assist subordinates to be able to formulate their individual or group<br>objectives, which are reliable. This will result in total commitment to<br>objective and efficiency and effectiveness will result.</p><p><b>1.5 &nbsp; &nbsp; &nbsp;<br></b><b>SCOPE<br>AND LIMITATION OF THE STUDY</b></p><p><b></b></p><b><p>This<br>research work is limited to First Bank of Nigeria Plc Enugu and how different<br>organisation can be managed better by the managers setting the goals and all<br>the company members working towards achieving the goals.</p><p>There are<br>many factors that act as constraint to the effort of the researcher in the<br>course of writing this project. Most prominent of the factors are:</p><p>a) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br><b>TIME: </b>The<br>research work is a big task and as such requires time and energy, which was not<br>on the researcher’s side.</p><p>b) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br><b>FINANCE:</b><br>This is another limiting factor. Due to limited financial resources available,<br>the researcher cannot procure all the needed material is for this project. For<br>instance, to get books from the library the researcher has to pay library,<br>which the researcher does not have all the time.</p><p>c) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br><b>COST:</b><br>The cost of transportation to and from First Bank of Nigeria Plc Okpara Avenue<br>is very high for the researcher.</p><p>d) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br><b>SECRECY: </b>Nigerians<br>dislike activities that tend to probe them. They tend to avoid researcher<br>because they feel their activities that are not meant for public consumption<br>would be exposed through research work.</p><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>1.6 &nbsp; &nbsp; &nbsp;<br></b><b>DEFINITION<br>OF TERMS</b></p><p><b></b></p><b><p>a) &nbsp; &nbsp; &nbsp;<b>MBO: &nbsp; </b>Management by<br>objectives.</p><p>b) &nbsp; &nbsp; &nbsp;<b>WAEC:</b>&nbsp;West Africa Examination Council</p><p>c) &nbsp; &nbsp; &nbsp;<b>SSCE: </b>Senior Secondary Certificate Examination</p><p>d) &nbsp; &nbsp; &nbsp;<b>OND: </b>Ordinary National Diploma</p><p>e) &nbsp; &nbsp; &nbsp;<b>B.Sc:</b>&nbsp;Bachelor of Science.</p><p>f) &nbsp; &nbsp; &nbsp; <b>PLC: </b>Public Limited Company</p><p>g) &nbsp; &nbsp; &nbsp;<b>FBN: </b>First Bank of Nigeria</p><p>&nbsp;</p><p>&nbsp;</p><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>REFERENCES</b></p><p><b></b></p><b><p>Koontz<br>O. Donnel and weihrich (1980) “ Management” New York: McGraw Hill Book Company.</p><p>Mullins,<br>L.J. (2005) “Management and organizational Behaviour” London: Pitman Publishing<br>Imprint.</p><p>Derek,<br>Laura et al (2005) “Human resource management” London: prentice Education<br>Limited.</p><p>George<br>S. Odiorne (1981) “Strategic Management and Management by objective” New York: Delay<br>Constancy Services, INC.</p></b></b></b></b></b></b></b></b></b></b></b> <br><p></p>