This paper reviews the concept of management by objectives. Management by objectives is a part of the body of participative management theory (Abrahamson, 1997).
The concept of participative management appeared for the first time at the General Motors Corporation prior to World War II, when that firm was under the leadership of Alfred Sloan. The participative management style did not receive wide attention, however, until the 1950s, when Peter Drucker introduced the term management-by-objectives. One characteristic of all forms of participative management is that organizational superiors consult with their subordinates concerning the development of performance objectives which are compatible with organizational goals. Thus, participative management, by its very nature, requires very different leadership styles from those associated with the authoritarian style. Prior to the emergence of the participative management concept, the principles of scientific management developed by Frederick Taylor (1911) dictated against any consultation with one's organizational subordinates. Later, in the 1930s, studies by Elton Mayo led to the discovery of what was termed the Hawthorne Effect, which led to the development of the human relations approach to management. The human relations approach postulates that treating employees less as if they are automatons will lead to improved productivity (Abrahamson, 1997). Scientific management and the human relations approach continue to pr
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Category: Business - C
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Hawthorne Effect, Szilagy Wallace, Thorlakson Murray, Peter Drucker, Management Journal, Management Review, , References Abrahamson, Company McGrath, Systems Management, participative management, davis 1999, drucker 1954, management objectives, thorlakson murray 1996, thorlakson murray, murray 1996, decision-making process, horton 1992, human relations, 6th ed, human relations approach, principles scientific management, organization davis 1999, szilagy wallace 1997,
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