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Management by Objective and Organizational Productivity: A Literature Review

The main aim of this study is to examine Management by Objectives as an instrument for improving organizational productivity. Management by objectives is a prominent management technique that cuts across or pervades all human activities, including business, education, government, health care, and non-profit organizations. It is not merely a managerial strategy for achieving well-coordinated managerial goals. Unfortunately, many firms have yet to use this strategy for gaining employee engagement and support. Subsequently, the objective of this research is to look into the connection between objective management and organizational production. More specifically, this paper intends to understand and describe the idea of management by objective (participation, goal setting and performance appraisal) and how it affects organizational productivity vis-à-vis market share and profitability. This study was conducted using the qualitative approach framework which include the review of related literatures in regards to the topic using journals, textbooks and other related document. From the discussion of findings, it was concluded that for any organizations to be productive and achieve sustained success, it must continuously encourage management by objective since it is very essential in attaining and sustaining organizational productivity. We recommended among others that managers should involve employees in setting and identifying short and long-term departmental goals.