ADMINISTRACION POR OBJETIVOS

Summary

This video introduces Management by Objectives (MBO), a strategic approach where managers and employees collaboratively set clear, measurable goals at the beginning of each period. Originating in the 1950s, MBO emphasizes results over processes and fosters engagement through joint goal-setting. Key features include interdepartmental alignment, continuous evaluation, and active participation from all levels. However, MBO also faces criticisms, such as fostering rigidity and pressure on employees. Ultimately, while it presents challenges, MBO remains a valuable administrative tool when applied thoughtfully.

Takeaways

• 😀 ABO is a management model that sets specific goals at the beginning of each period.
• 😀 The shift from process-oriented management to results-oriented management emerged in the 1950s due to economic pressures.
• 😀 Key characteristics of ABO include joint goal setting between managers and subordinates.
• 😀 Objectives must be specific, quantifiable, and aligned with overall organizational goals.
• 😀 There are three levels of objectives: strategic (long-term), tactical (medium-term), and operational (short-term).
• 😀 Continuous evaluation and revision of goals and plans are crucial for effective management.
• 😀 Successful implementation of ABO requires intensive support from trained personnel.
• 😀 ABO has limitations, including potential rigidity and risk of overemphasizing measurable results over creativity.
• 😀 Common pitfalls in ABO include lack of top management involvement and neglecting ongoing evaluation.
• 😀 While ABO is a useful tool, it is not a universal solution; careful consideration and critical assessment are necessary.

Q & A

What is administration by objectives (ABO)?

Administration by objectives is a management model where organizational management establishes goals for their operations at the beginning of each period.

How did the focus of management change in the 1950s?

In the 1950s, management shifted from process-oriented activities to a focus on achieving results and objectives due to pressures on U.S. businesses.

What role did Peter Drucker play in the development of ABO?

Peter Drucker, known as the father of administration by objectives, published 'The Practice of Management' in 1954, shifting the focus from how to manage to why and for what purpose.

What are the key characteristics of administration by objectives?

Key characteristics include joint goal setting between managers and subordinates, quantifiable objectives, interrelated departmental goals, emphasis on measurement and control, continuous evaluation, and active participation from both management and staff.

What criteria should be considered when setting objectives?

Objectives should be specific, measurable, challenging but attainable, relevant, and aligned with the organization's overall goals.

What are the three levels of objectives in an organization?

The three levels are strategic objectives (long-term), tactical objectives (medium-term), and operational objectives (short-term).

How do strategy and tactics differ in the context of ABO?

Strategy refers to the organization's overall plan to achieve broad goals, while tactics involve specific actions taken by departments or units to meet those strategic goals.

What are the ten deadly sins of administration by objectives?

The ten deadly sins include lack of top management participation, treating ABO as a one-size-fits-all solution, rapid implementation, focusing only on financial objectives, oversimplifying processes, applying ABO in isolation, delegating responsibility improperly, focusing on individuals over group issues, neglecting ongoing motivation, and ignoring personal objectives.

What are some critiques of administration by objectives?

Critiques include the potential for creating a rigid structure that stifles creativity, the risk of misguiding efforts towards narrow objectives, and the negative psychological impacts of a reward-and-punishment system.

Can administration by objectives be beneficial despite its limitations?

Yes, administration by objectives can be a valuable management approach when applied carefully, recognizing its limitations while leveraging its advantages.