Management by Objectives (MBO) is a management approach that is
frequently discussed and extensively employed, but seldom sufficiently
evaluated. In this study, companies were contacted randomly from lists
in Business Week's Annual Corporate Scoreboard to ascertain their
use of MBO. The resulting 45 companies using MBO were compared
with the 34 not using MBO on 5 quantitative organization results.
Although MBO users exceeded nonusers on all five criteria, only one
difference was statistically significant. Similar results were found
when comparisons were made within industrial groupings. Results
were related to possible limitations of the study design and of MBO
itself.
Get full access to this article
View all access options for this article.
References
1.
Ford, C.H. (1979). MBO: An idea whose time has gone?Business Horizons, 22(12), 48-56.
2.
Giblin, E.J., & Sanfilippo, F. (1978). MBO: A misunderstood tool for creative planningManagerial Planning , 26(3), 4-10.
3.
Jackson, J.H. (1979). Lessons from MBO consulting: Four case studiesPaper presented at Academy of Management Annual Meeting.
4.
Jun, J.S. (1976). A symposium: Management by objectives in the public sectorPublic Administration Review, 36(1), 1-5.
5.
Kondrasuk, J.N. (1981a). MBO: Who's using it and what they think of itProceedings of IX Annual Management by Objectives State-of-the-Art Conference (pp. 74-77).
6.
Kondrasuk, J.N. (1981b). Studies in MBO effectivenessAcademy of Management Review, 6(3), 419-430.
Latham, G.P., & Yukl, G.A. (1975). A review of research on the application of goal setting in organizationsAcademy of Management Journal , 18(4),824-845.
9.
McKonkie, M.L. (1979). A clarification of the goal setting and appraisal processes in MBOAcademy of Management Review , 4(1), 29-40.
10.
Muczyk, J.P. (1979). Dynamics and hazards of MBO applicationThe Personnel Administrator, 25(5), 51-61.
11.
Odiorne, G. (1979). MBO IIBelmont, CA: Fearon Pitman.
12.
Ruth, S.R., & Brooks, W.W. (1982). Who's using MBO in management?Journal of Systems Management (February), 16-17.
13.
Schnabe, M. (1979). Management by objectives review and evaluationManagerial Planning, 27(2), 19-24, 34.
14.
Strategic Planning Institute. (1980). Nine basic findings on business strategyThe Pimsletter , 1(1), 1-7.
15.
Weimer, G.A. (1980). MBO is tailor made for managing in recessionIron Age, July 21, 36-38.
16.
Weiner, N. & Mahoney, T.A. (1981). A model of corporate performance as a function of environmental, organizational and leadership influencesAcademy of Management Journal, 24(3), 453-470.
