Management by Objective as an Instrument For Organizational Performance
The main aim of this study is to examine Management by Objectives as an instrument for organizational performance with focus on Mitanyen Co-operative Credit Union Ltd. Management by objectives (MBO) has been advocated as a tool to improve management effectiveness for over twenty-five years. Drucker (1954) first advocated MBO as a systematic approach to setting objectives that would lead to improved organizational performance and employee satisfaction. A multitude of private sector business organizations and public sector organizations have implemented some form of MBO. The major problem of this study is that management of companies in Cameroon lack sufficient techniques to make them manage effectively. One of the many problems facing the business community of Cameroon has been the problem of integrating the objectives of the employees with that of the organization for the achievement of the organizational goal. Paul Hersey et al (1988) points four basic components of the MBO system. The researcher will examine the impact of MBO on the performance of Mitanyen Co-operative Credit Union Ltd. This research paper should be of help to any manager at any organizational level who is interested in improving on the quality of output of his organization. Management by objective is not only a managerial strategy to achieve co-ordinated goals, but it is also a popular management techniques that cuts across several disciplines such as; Business sector, Educational sector, Government, Health care and non-profit organization. The study also seeks to examine the various problems affecting management by objective as an instrument for organizational performance and the level of participation of both managers and employees in the setting of goals to be achieved in the organization. Data was collected from both primary and secondary sources. The major sources of primary data were direct oral interview and questionnaire which was conducted among the staff. The statistical test of proportion (Z-test) was applied in analyzing the data. The major findings of the study were: MBO helps to obtain total commitment of all employees to work together in order to achieve a common goal; that good and prompt salary, promotion as when due, good relationship with management and recognition of achievement improves performance of the workers and by so doing enhances organizational performance when management by objectives is being adopted. In practical terms, the operations of management by objective requires that each manager of a unit draws up their departmental objectives with his subordinates in line with the centrally stipulated corporate objectives and mission.