Peter Drucker 1

2030 Words Sep 18th, 2010 9 Pages
Peter F. Drucker developed the “Management by Objectives Theory”. This theory presents an objective that needs to be accomplished. A manager will receive an objective and break it down into achievable goals. The Manager will then delegate employees on what tasks should be done. Once all tasks are complete the project will fit together like pieces of a puzzle. This style of management is good for the employee in the fact that they are told what to do, but get to be creative and accomplish the task in their own manner.

Submitted June 26, 2009

Introduction There is a time when every entrepreneur starts at the bottom of the food chain. You receive orders that came from your store manager who received them from their regional manager and so
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The Management by Objective’s is very versatile and can be used for many different purposes. It can be used when you want employees to develop self-leadership and management skills. This will also help employees be creative; and be able to draw back into past experience and pick up on patterns and apply them to present tasks (Kotelnikov, 2001, ¶ 5).
Setting Objectives In Management by Objectives theory the hardest part can be the first step of the process, setting the objectives. When starting this management style there are two questions that you can ask to get yourself started. These questions are; what are the objectives and what are the time frames in which goals should be met (Kotelnikov, 2001, p. 2)? When setting up the objectives for you first time the S.M.A.R.T. method is a good resource to use. This method acts as a guideline to set up objectives and to keep you on the right track. The S.M.A.R.T. method stands for: Specific, Measurable, Achievable, Realistic, and Time-based (Bogue, 2009, ¶ 12).
When setting up objectives there are many variables that come into effect. First off objectives should be specific; this is done by describing what you are trying to achieve. For example, stating that “productivity needs to increase” is very broad; and should be stated more along the lines of “increase productivity by ten percent”. This way the objective is specific on