ABSTRACT

As against conservative nature of some organization managers prior to the introduction of MBO organization had become more flexible and fill with risk as they now engage in imprudent and unprofessional activities in other to execute there formulated goals. These activities led to kluge losses, distress syndrome, low morale, conflict, poor communication and lack of control leading to eventual collapse of the organization.Without doubt, the importance of MBO as an effective strategy for achieving organization goals cannot be overemphasized. What is more important is the attitude of managements in following the (aid down procedure of an effective and efficient principles of MBO so as to maintain a sound organization system. It had been !toted that one of the major phenomenon distress is poor labour management relation.  Which common among the distress organization.The research adopted the survey descriptive design and with the aid of convenience sampling method, the researcher  conveniently selected eighty (80) participant who are management and staff  Vita Malt Lagos State as respondent of the study.Self- structured questionnaire was issued to the respondent of which  seventy-seven (77)responses were retrieved and validated for the study. The study made use of of descriptive analysis and inferential statistic where data from field survey was analyzed using simple percentage. Hypotheses was tested using ANOVA statistical package for social science (SPSS v23). Findings of the study conclude that  the operations of management by objectives requires that each manager of a unit draws up his department objectives with his subordinates in line with the centrally stipulated corporate objectives and missions.The objectives set in the process of management by objectives help provide a yardstick for appraisal, compensation and control as well as serve as a measure or guide for operating the unit and assessing the contribution of each of its members; Well defined, realistic goals affect the performance of the employee which in turn affect organization effectiveness, Organizations that adopt management by objectives usually achieve its set objectives., and the practice of management by objectives facilitate the emulation of team spirit and work in an organization. The benefits of team spirit in modern day management cannot be over-emphasized. It helps groups overcome individual collective goals and slums selfish or sectional interests. The study recommends that managers should consult their subordinates as well as involve them in drawing up unit objectives, which goes up the hierarchy from where it is modified, collected, approved and distributed throughout the organization, specific, Measurable, Acceptable, Realistic and Time-bound (SMART) goals should be set by organizations as this element is crucial in MBO and it brings about agreement on the objectives between the employees and the organization. there should be regular training and re-retraining of employees in order to achieve the corporate objectives.

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

One of the many problems facing the business community has been the problem of integrating the objectives of the employees with that of the organization for the achievement of the organization objectives. Even when such integration has been made there should be a clear method or system of measurement of the contribution of employees to the organizational achievement. Organizations that practice management by objectives seem to be on the positive threshold of solving this problem. Management by objective (MBO) is a systematic approach to managing an organization practicing the basic management functions of planning, organizing, staffing, leading and controlling.

Management by objective is a result oriented concept for all functional area of (Nestle Nig PLC). The distinguishing characteristic of management by objective (MBO) is its emphasis on results achievement of objectives.  It is based on a concept of human motivation.  Accordingly it places emphases on the involvement of the employee in planning directing and controlling aspects of the job that will be done, when it will be done and how it will be done?

The underlying belief is that this involvement of employee leads to commitment and if an employee is committed he can be directed to perform in manner that positively contributes to the achievement of organizational goals. The MBO afford both the superiors and subordinates the opportunity to sit together and jointly identify common goals of the enterprise, define individual major areas of responsibility, term of the results expected of them and use these measures as guides for operating the units and assessing their contribution.

Management by objective should guard against misdirection of common organizational goal by various functional managers.  The in- depth assumption is that the organization is well vested upon its managers.  By jointly setting objectives between the employer and the subordinate a mutual understanding results, the employee now accept the responsibility and works out action plan to meet performance standard set for the specific job.  MBO has psychological background.  In order to understand and benefit from MBO all employees who are included in it must understand the psychological principles on which it is based. An employee’s need for job satisfaction is being met when MBO is introduced into an organization and a training course is given, which explains Maslow’s hierarchy of needs, Hertzberg’s theory of motivational emphasis and Mc Gregory’s theory X and Y. These theories emphasize an increase in employee’s job satisfaction when he feels a sense of achievement & involvement in his work.  Unless MBO is carried out in this spirit, it becomes merely another method by which subordinates can be controlled (Graham, 1985). The employee’s sense of responsibility serves as impetus for business growth.

Acceptance of responsibility removes fear and spur up employees with an internal self motivation for performance.  When employee are motivated productivity increases. Through management by objectives (MBO) responsible workers emerge. According to Nwachukwu (1988), there is the contention that (MBO) bring about employee satisfaction.  Employees’ contributions are recognized and rewarded through job performance appraisal system which is an ingredient of management by objective (MBO).

Management by objective enables prudent utilization of resources setting of priorities and time. Druker (1977) posits that if only targets are defined, resources can be allocated to the attainment of priorities and someone can be placed in responsible position and held accountable for achievement of result. An employee can withdraw his services if he perceives that his contribution has not been equitably compensated, rewarded or recognized. Coaching and counseling are used to guide subordinates to be on the objective track.

In summary management by objective in the recent years has been one of the most striking developments in the managerial cut of getting result in an organization.  Significant number of firms ranging from small enterprise to giant public corporation report accomplishment of a most astonishing and profitable nature when MBO is correctly applied. It enhances work simplification, equitable compensation, better utilization of equipment, starting a new business, inventory control and organization clarity (Mali 1972)

It is clear from the vast body of information and knowledge developing around that MBO concept is a dynamic management way of life, which is steadily maturing and will remain so for some time to come.  This is informed by the fact that management practitioners themselves are increasingly concerned with improving their own effectiveness with the use of management by objective (MBO).  Based on the above, the researcher therefore, examined the impact of MBO on the organizational performance.

1.2   STATEMENT OF PROBLEM

Inspite of the contributions of the MBO to the achievement of organizational objectives, Nestle Nigeria Plc are yet to show visible evidence of improved performance. There has stiff challenges facing the company because of the scarce resources available to it, especially in the area of accessing raw materials locally, as most of their suppliers have gone out of business, companies like National Fertilizer Company of Nigeria (NAFCON) which has shut down its operations. There is also the challenge of an ever changing policies, unstable objectives and performance standards which have militated against the smooth running of the organization to steer it to success.

1.2   PURPOSE OF STUDY

The purpose of this study is to examine and understand, the concept management by objectives (MBO) and its effectiveness in achieving organization predetermined goals and objectives, and more so to recommend the concept to every organization.

1.3   THE OBJECTIVES OF THE STUDY

(i)     To examine the general impact of MBO towards achieving organizational goals and objective.

(ii)    To study the main principle of management by objectives (MBO)

(iii)   To determine where management by objectives applicable in day running of the organization.

(iv)   To study management focus on MBO

(v)     To examine factors that affect MBO and how to subdue it

(vi)   To recommend the concept to every management in achieving their objectives.

In conclusion, I hope to provide relevant theories and literatures, to the mature of collaborative processes in MBO programmers.

1.4   SIGNIFICANCE OF STUDY.

The relevance of the study is add to the previous and existing literature in this discourse.

Another significant is the understanding of the subject matter by the general public.

Through this project various management will recognized the need to systematically learn how to indicate goals and how to manage their subordinates, to the goals and objectives of the organization will be easy to achieve and attained.

Furthermore, this study is an eye opener former to gain improvement, confidence and assurance in facing future challenges as it may come.

Finally, it is appropriate in situation where you which to build employee, management and self leadership skin and tap clavier creativity, tactic knowledge and initiative.

1.5   STATEMENT OF PROBLEM

The statement of problem associated with the study, can be traced to significant environmental factors and events that shape the operation of the organization but for organization to survive and have competitive advantage over its competitors, this organization affects organizations policy, programmers, philosophy and practice, which may lead subtle dissatisfaction, poor performance, resistance, conflict role ambiguity and ill relationship among superiors and surbohinder the attainment of organization delegated grand plans for achieving present and future goals and objectives.

1.6   SCOPES AND LIMITATION

This study will be limited in scope to the element within the sample of VITAMALT NIGERIA PLC, particularly to the staffs both at upper and lower echelon.

Furthermore, another extraneous factors limitation to this study would be.

· Time Factor

· Respondent Behavior And Attitude

· Financial Implications

· Personnel To Execute Study

· General State Of Nature

Finally the scope of the study is restricted to Lagos branch Agara where sample size will be drawn.

1.7   STATEMENT OF HYPOTHESES

Hypothesis would be tested for the purpose of the study, which are as follows

HYPOTHESIS 1

Ho:   There is non correlation between managements goals.

Hi:   There is correlation between managements goals and subordinate goals.

HYPOTHESIS 2

Ho:   Failure to achieve organizations objectives is not caused by poor management

HI:   Failure to achieve organization objective is caused by poor management

1.8   DEFINITION OF TERMS

Below are the definition of some terms used in the items

Management: it refers to getting things (activities) done through with people by planning, organization, coordinating, directing and controlling.

OBJECTIIVES: This an end goal toward which all activities should be aimed.

STRATEGY: A term that deals with organization goals and objectives it could be long terms or future terms. Deliberately planned or emergent.

JOB SATISFACTION: This is the degree to which individuals  feel position or negatively about their jobs.

ENVIROIIENT: It is used to refers to the physical and social context with in which any target system is functioning, be it a persons group or organization.

FEEDBACK: Technical term from system theory used primarily, to describe one persons report to another of the on the reporter.

PRODUCTIVITY: Targets there is a measure of the resources should be vitalized (e.g.) output per man hour est.

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