Effect Of Management By Objectives On Organization Performance (A Case Study Of Vitamalt Plc)

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Effect Of Management By Objectives On Organization Performance (A Case Study Of Vitamalt Plc)


As against conservative nature of some organization managers prior to the introduction of MBO organization had become more flexible and fill with risk as they now engage in imprudent and unprofessional activities in other to execute there formulated goals. These activities led to kluge losses, distress syndrome, low morale, conflict, poor communication and lack of control leading to eventual collapse of the organization.

Without doubt, the importance of MBO as an effective strategy for achieving organization goals cannot be overemphasized. What is more important is the attitude of managements in following the (aid down procedure of an effective and efficient principles of MBO so as to maintain a sound organization system. It had been !toted that one of the major phenomenon distress is poor labour management relation. Which common among the distress organization.




1.1 Background to the Study

1.2 Purpose of Study

1.3 The Objectives of the Study

1.4 Significance of Study.

1.5 Statement of Problem

1.6 Scopes and Limitation

1.7 Statement of Hypotheses

1.8 Definition of Terms



2.0 Introduction

2.1 Management by Objectives (MBO)

2.2 The MBO

2.3 Participation and Freedom of Action

2.4 Stages, Principles, Advantages and Disadvantages of Management by Objectives System

2.5 Criticisms and Limitations of MBO

2.6 Guidelines That Will Make MBO Work

2.7 Benefit of MBO

2.8 Summary



3.0 Introduction

3.1 Design an Approach

3.2 Determination of Sample Size

3.3 Sources of Data Collected

3.4 Method of Data Analysis

3.5 Field Work Experience

3.6 Field Work Experience



4.1 Introduction

4.2 Test of Hypothesis



5.1 Summary

5.2 Conclusion

5.3 Recommendation





At the survival of any organization, there must be deliberate grand plan for achieving present and future goals and objectives, in which the organization must be strategic about, such actor, otherwise it would affect organization at large.

To formulate and implement organization objectives into a practical planning target that would not fail in respective of the organization.

BUDGETING could be adopted, but a more effective alternative system applicable would `MBO” management by objective, although to establish a system of MBO calls for a lot of efforts and participative approach to decision making by management and subordinate (MBO) is a process through which individuals in an organization works together to identify goals and objective and to coordinate these effort in attaining initially development in the 1950s, MBO has gone from being a fund in. the 1960s,and early 1970 to failing to into disrepute in many organization in the 1980s and 1990s, yet, as most research has indicated, it is the way in which MBO is usually implemented that created problems rather than the idea of MBO it self.

MBO was initially development as a synthesis of there process which are goal setting, participation in decision making, and objective feedback, in an MBO program, a supervision and attempt to accom consume on (1) the goals the subordinate will attempt accomplish alluring a specific period of time. (2) the means the subordinate A7ill use to reach these goals and (3) how progress toward the goals will be measured and evaluated. A key factor under lying this method is the degrees to which there is true participation MUTUAL INVOLVEMENT in determining objectives and means during the process.

PETER DRUNKER (1959) (MBO) management by object allows management to focus on achievable goals and to attain the best possible result from available resources.

It aims to increase organization performance by allying goals and subordinate objectives, throughout the organization. Ideally, employees get strong input to identify their objectives, time , lines for completion e.t.c. MBO include ongoing tracking and feedback in the process to reach objectives.

Management by objective is not a new techniques it was introduction as a supplementary management tools by ALFRED SLOAN in the early 1950s, however, PETER DRUNKER is credited in his classic management drunker is credited with being the father of MBO, it was George Ordiore who popularized MBO with his statement of its six major premises.

Management by objective (MBO) focuses on the result not the activity they delegate task to subordinate Management is about salting yourself objectives and then break specific goals or key results.

It is true to say that the place of MBO has come to be being the keystone to the success and indeed, to every existence to the organization it is no over, statement to declare that what ever may be the future, the application of MBO will be an important tools. Indeed so significant is the important as MBO to the organization and nation that it cannot be over emphasized.


The purpose of this study is to examine and understand, the concept management by objectives (MBO) and its effectiveness in achieving organization predetermined goals and objectives, and more so to recommend the concept to every organization.


(i) To examine the general impact of MBO towards achieving organizational goals and objective.

(ii) To study the main principle of management by objectives (MBO)

(iii) To determine where management by objectives applicable in day running of the organization.

(iv) To study management focus on MBO

(v) To examine factors that affect MBO and how to subdue it

(vi) To recommend the concept to every management in achieving their objectives.

In conclusion, I hope to provide relevant theories and literatures, to the mature of collaborative processes in MBO programmers.


The relevance of the study is add to the previous and existing literature in this discourse.

Another significant is the understanding of the subject matter by the general public.

Through this project various management will recognized the need to systematically learn how to indicate goals and how to manage their subordinates, to the goals and objectives of the organization will be easy to achieve and attained.

Furthermore, this study is an eye opener former to gain improvement, confidence and assurance in facing future challenges as it may come.

Finally, it is appropriate in situation where you which to build employee, management and self leadership skin and tap clavier creativity, tactic knowledge and initiative.


The statement of problem associated with the study, can be traced to significant environmental factors and events that shape the operation of the organization but for organization to survive and have competitive advantage over its competitors, this organization affects organizations policy, programmers, philosophy and practice, which may lead subtle dissatisfaction, poor performance, resistance, conflict role ambiguity and ill relationship among superiors and surbohinder the attainment of organization delegated grand plans for achieving present and future goals and objectives.


This study will be limited in scope to the element within the sample of VITAMALT NIGERIA PLC, particularly to the staffs both at upper and lower echelon.

Furthermore, another extraneous factors limitation to this study would be.

Time Factor
Respondent Behavior And Attitude
Financial Implications
Personnel To Execute Study
General State Of Nature
Finally the scope of the study is restricted to Lagos branch Agara where sample size will be drawn.


Hypothesis would be tested for the purpose of the study, which are as follows


Ho: There is non correlation between managements goals.

Hi: There is correlation between managements goals and subordinate goals.


Ho: Failure to achieve organizations objectives is not caused by poor management

HI: Failure to achieve organization objective is caused by poor management


Below are the definition of some terms used in the items

Management: it refers to getting things (activities) done through with people by planning, organization, coordinating, directing and controlling.

OBJECTIIVES: This an end goal toward which all activities should be aimed.

STRATEGY: A term that deals with organization goals and objectives it could be long terms or future terms. Deliberately planned or emergent.

JOB SATISFACTION: This is the degree to which individuals feel position or negatively about their jobs.

ENVIROIIENT: It is used to refers to the physical and social context with in which any target system is functioning, be it a persons group or organization.

FEEDBACK: Technical term from system theory used primarily, to describe one persons report to another of the on the reporter.

PRODUCTIVITY: Targets there is a measure of the resources should be vitalized (e.g.) output per man hour est.

ORGANIZATION: An organization can be described as a planned coordination of the activities of a number of people in the service of mutual harp for the achievement of a common goal through division of labour and function through hierarchy of authority and responsibility.

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