Contemporary management issues are greatly influenced by recent technological advancements. Such advancements and transformations are easily observable in nearly all management organizations such as libraries, hospitals, universities, etc. Information processing, computerized operations, automated production processes, etc., are some of the latest technological changes that have significantly affected management techniques and their usage. Nowadays, managers are more effective in their management operations as technology has made it possible to efficiently control and manage work processes.
The ‘business environment’ in which companies function is very unstable and ever-changing. However, the companies have to function as per the societal needs as well. As both these factors affecting businesses are variable in nature, the business strategies to be adopted by the companies also need to be changing to match with the variance. Successful management techniques undertaken few years ago may become unproductive as per the current needs and demands of the market. New improved techniques and strategies have to be developed to keep pace with the changing environment. Few contemporary issues or trends in management are listed below:
- Management by Objective
- Management By Walking Around
- Balance Score Card
- Business Process Outsourcing (BPOs)
- Six Sigma
- Total Quality Management (TQM)
- Stress Management
- Time Management
- Out-of-the-Box Thinking
MBO (Management by Objectives) is a personnel management technique where managers and employees work together to set, record and monitor goals for a specific period of time. Organizational goals and planning flow top-down through the organization and are translated into personal goals for organizational members. The technique was first championed by management expert Peter Drucker and became commonly used in the 1960s.
Thus, MBO is a management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees. According to the theory, having a say in goal setting and action plans encourages participation and commitment among employees, as well as aligning objectives across the organization.
Features and Advantages of MBO
The principle of MBO is for employees to have a clear understanding of their roles and the responsibilities expected of them, so they can understand how their activities relate to the achievement of the organization’s goals. MBO also places importance on fulfilling the personal goals of each employee.
- Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment. This increases employee job satisfaction and commitment.
- Better communication and coordination – Frequent reviews and interactions between superiors and subordinates help to maintain harmonious relationships within the organization and also to solve problems.
- Clarity of goals.
- Subordinates tend to have a higher commitment to objectives they set for themselves than those imposed on them by another person.
- Managers can ensure that objectives of the subordinates are linked to the organization’s objectives.
- Common goal for whole organization means it is a unifying, directive principle of management.