Hunter, J.E.: Impact of management by objectives on organizational productivity. J. Appl. Psychol. 76(2), 322-336

Journal of Applied Psychology (Impact Factor: 4.31). 03/1991; 76(2):322-336. DOI: 10.1037/0021-9010.76.2.322

ABSTRACT Goal setting, participation in decision making, and objective feedback have each been shown to increase productivity. As a combination of these 3 processes, management by objectives (MBO) also should increase productivity. A meta-analysis of studies supported this prediction: 68 out of 70 studies showed productivity gains, and only 2 studies showed losses. The literature on MBO indicates that various problems have been encountered with implementing MBO programs. One factor was predicted to be essential to success: the level of top-management commitment to MBO. Proper implementation starts from the top and requires both support and participation from top management. Results of the meta-analysis showed that when top-management commitment was high, the average gain in productivity was 56%. When commitment was low, the average gain in productivity was only 6%. (PsycINFO Database Record (c) 2012 APA, all rights reserved)

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    • "Goalsetting theory has developed and become more sophisticated over several decades, and the dominant motivational theory (Fried and Slovik, 2004) is both valid and useful (Tubbs, 1986). A large number of studies have confirmed the relationship between goals and improved results, including research focussed on organizations (Baum et al., 2002), organizational units (Rogers and Hunter, 1991), MBO (Thompson et al., 1981), academic achievements and learning (Harackiewicz et al., 2000; Church et al., 1993) and children's goals and their relationship to achievement behavior (Anderman and Midgley, 2001; Covington, 2000). Covington (2000) argues that teachers can use goals and rewards to direct and change students' learning. "
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    ABSTRACT: Abstract Purpose – This paper seeks to explore how principals use their time when the requirement exceeds the activities are desirable. In the scholarly debate it has been pointed out the heads think that too much time is devoted for the financial and administrative issues, or to solve acute problems. This means that there is not enough time to work with educational issues. The purpose of this paper is to clarify how principals use the time they have devoted for the educational area and what activities they prioritize. It will also increase the knowledge of reasons behind their prioritizing and reflect on some of the consequences. Results relate to the question if introduction of performance measures has increased a short-term perspective on student performance or if it works as a suitable tool for the principals to achieve the schools goals and to create more effective schools in the long run. The question if stakeholders can get required insight by the performance measures as they are designed today and if the principals got the right incentives is raised. Design/methodology/approach – A quantitative approach is used and a mail questionnaire was distributed to the principals in all upper secondary schools in Sweden and a comparative cross-sectional study was conducted. Findings – Principals’ perceptions suggest that, their prioritization when working with educational issues is influenced by a more short-term perspective and that they prioritize teaching, which have a much faster impact on student outcome, over long-term school development which facilitate the conditions for the former. These findings increase the insight into the need, for as well stakeholders as principals, to develop performance measures to stimulate change when needed. Practical implications – These findings have implications on the direction of the development of performance measures. The result points out the lack of transparence for stakeholders and uncovers the need to know when change and long-term development is ongoing or not. The study show how principals need incentives for prioritizing these activities and that this can be done by the stakeholder by designing required measurements for as well teaching as long-term school development when change is needed or to maintain a successful process. Originality/value – This paper fulfills an identified need to study how the performance measures of today can be complemented with measures for stakeholders for increased insight in ongoing activities with development and required change for long-term school success.
    Journal of Organizational Change Management 07/2014; 27(3):520-531. DOI:10.1108/JOCM-07-2013-0113 · 0.74 Impact Factor
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    • "This help employees understand how it all fits together with the objectives and revise their goals (Robbins et al, 2012). Particular importance for increasing productivity is the method of Management by Objectives (MbO), which requires executives to have measurable goals for the employees and to evaluate them at regular time intervals (Rodgers and Hunter, 1991). "
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    ABSTRACT: In the recent years -due to the economic crisis -the stereotype claiming that Greek employees do not work much has been discredited; in fact, according to several studies, Greek employees work harder than their European peers. Statistically speaking they work on an average of 42 hours per week, whereas employees in the Netherlands and in Germany are employed on an average of 31 and 36 hours per week, respectively. One of the reasons for this employment time deviation between the North and South has been reported to be the benefits that the more advanced technology and modern infrastructure bring about. Productivity is expressed as the relationship between the outputs of a production system (both goods and services) and its resources (inputs) that are consumed in producing the outputs. It represents a measure of how well resources, such as labor, machines, materials, energy, capital, etc., are used. It is, however, with caution that the notion of productivity in productive systems need to be considered, since it is not only associated with the human resources efforts, and neither the level of productivity can be regarded as high or low only due to labor's responsibility. Productivity reflects the total and holistic effect of multiple factors, such as the physical capital (machines, buildings), technology, human capital (education and training), work organization, economies of scale, etc., onto the output of a production system. In the present work emphasis is given to productivity and related factors that capture certain aspects in labor management and are associated with economic performance. First, a brief literature review that sheds light into productivity issues and related factors is provided. Next, an appropriate mathematical model that incorporates operational constraints and market requirements is developed to minimize total labor and technology cost, aiming at ensuring an informed decision making process for productivity enhancement, especially in the years of the economic crisis. The study explores further potential initiatives and work flexibility plans, in an attempt to define ways of increasing productivity for the sake of both the company and its human resources. peer-review under responsibility of the 2 nd International Conference on Strategic Innovative Marketing.
    procedia; 09/2013
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    • "Management by objectives was a popular business management system in the latter decades of the last century, and has been demonstrated to increase productivity in a wide range of industries [1] [2]. The traditional model of management by objectives involves a retrospective analysis of how different strategies (or individuals) performed against the agreed set of goals determined at the start of the process. "
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    ABSTRACT: a b s t r a c t A review of future management arrangements for the Queensland East Coast Trawl fishery was undertaken in 2010 to develop a management plan for the next 10 years. A key question raised at the start of the review process was: what should the management plan achieve? As with fisheries management in most countries, multiple management objectives were implicit in policy statements, but were poorly specified in some areas (particularly social objectives) and strongly identified in others (e.g., an objective of sustainability). As a start to the management review process, an analysis of what objectives the management system should aim to achieve was undertaken. A review of natural resource management objectives employed internationally was used to develop a candidate list, and the objectives most relevant to the fishery were short-listed by a scientific advisory group. Additional objectives specific to Queensland fisheries management, but not identified in the international review, were also identified and incorporated into the objective set. The relative importance of the different objectives to different stakeholder groups was assessed using the Analytic Hierarchy Process. As with other studies, the relative importance of the different objectives varied both within and between the different stakeholder groups, although general trends in preferences were observed.
    Marine Policy 09/2013; 37(1):115-122. DOI:10.1016/j.marpol.2012.02.016 · 2.62 Impact Factor
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