THE IMPACT OF MANAGEMENT BY OBJECTIVES ON STAFF MORALE AND PRODUCTIVITY

CHAPTER ONE

INTRODUCTION

1.0    BACKGROUND OF THE STUDY

In the 1960’s a technique of planning by objective setting on a total organizational and individual basis was developed, in the main by J. humble of Urinck or and partners. The system was called management by objectives (MBO). This system was called management performance, but it was in the area of planning that the system mad its greatest impact.

The system rested on the setting of:

1.      Quantitative objectives i.e how much?

2.      Quantitative objectives i.e how well?

3.      Verifiable objectives i.e with what results?

It was hoped that involving staff in the setting of their own objectives, in consultation with their managers, would lead to better ad more committed performance by individuals, i.e agreed plans and objectives-agreed performance.   

The system was developed in the growth era of the 1960s and adopted by numerous organizations. However, in the recession-riddled 1970’s the system fell into disrepute many organizations questioned whether the time and money involved in setting up the system really paid off when the pace of change quickened and the future was so uncertain. For example, during the three day working week era, 1973/74, organizations were reassessing their objective on an almost daily basis.

1.2    STATEMENT OF THE PROBLEM    

It will be pertinent to note that all organization are face with their particular problem and that is the problem of participation in the setting of objective because it vary hidely subordinates may only be involved by being there when told what management has decided or they may set the objectives and decide methods which they are to be achieved. In practice methods adopted lie between these two extremes and the greater the participation of both managers and employees in the setting of objectives, the more likely objective are to be achieved or not through their implementation. Owe can moral really boost the organization productivity on the long run?

1.3    PURPOSE OF THE STUDY

The study aimed to clearly define the purpose for this research work.   

This includes the following:

i.        to determine the organization morale techniques to use to in order to boost their productivity.

ii.       To find out some problems or hardship encounter by organization as a result of management by objectives techniques used in the organization.

iii.      To find the effectiveness of management by objectives on staff morale and productivity.

iv.      To provide useful recommendations to effective of staff morale and productivity if given chance in the organization.

v.       Finally, to see how participation of employees will lead to greater employee acceptance of performance goals and management decisions and understanding among managers and their subordinates.  

1.4    SIGNIFICANCE OF THE STUDY

          This study is significant in a number of important ways.

          Firstly, the study will provide greater opportunity to managers to hidden their knowledge on the concept of management by objectives and its effectiveness on staff morale and productivity.

           It will help the organization to describe the techniques of management by objectives they are to use.

It will help the organization to explain how motivation greatly influences the employee’s morale to work towards achieving its objectives.

          It is equally intended to serve as a reference materials for students, researcher and mangers/consultants who high to carry out a research work on the subject matter.

          To make recommendations to the management of IBBI on how to design an effective management by objectives strategies in enhancing staff morale on productivity.

1.5    STATEMENT OF HYPOTHESIS

Hypothesis is a testable, tentative probable explanation of the relationship between two or more variable that creates a state of affairs phenomenon.

The following hypotheses are put forward for this study  

H₀:    Management by objectives does not have any impact on staff morale and productivity.

H_i:     There is great impact of management by objectives on staff morale and productivity.

1.6    SCOPE OF THE STUDY

The study is centered as the impact of management by objectives on staff morale and productivity.

The study will look at this subject matter on staff morale at IBBI Ltd, Kaduna and will be carried out at the company factors at Nnamdi Azikiwe bye pass Kaduna South. 

1.7    DEFINITION OF TERMS

Fringe benefits – An employment benefit granted by an employee that involves a money cost without affecting basic wage rate, such as paid vacation, group insurance, sick leave and pension.

Management – One who undertakes the function of management at any level in the organization.

Organization – The management function of dividing the work or activities of the business into manageable units.

 Planning – The management function of selecting the future courses of action for the business (goals, policies, strategies).

Policies – Standing plans or guides to direct and control the activities of the business, guides to decision making.

Productivity – The amount of works turned out by a worker (or a machine) per unit of time.

Staff– Personnel who provide specialized technical or professional assistance (advice) to “lie” personnel.

Staffing – The assignment of task to individuals qualified to perform them.