A fresh look at management by objectives

Abstract

The author takes a new approach to management by objectives so that the organization, not only the workers, will benefit. The over-all goals o f the organization are set by management and disseminated throughout the company. In turn, each individual formulates his objectives, which are submitted to his subunit, then communicated upward through the hierarchical structure. This vertical movement ensures that all members of the organization feel that they are participating in its operation. Lateral trade-offs are brought about by peer groups reviewing the objectives o f their fellow employees—even at the top management level. Top management must then integrate and direct the carrying out of the objectives. The entire cycle takes about four months, but the improved communications result in a better understanding o f the company's purposes.