The effect of management by objectives on organizational performance

Abstract

The study aimed at establishing the effect of management by objectives on organizational performance using Centenary Bank as the case study with more emphasis on its three branches i.e. Masaka, Kayabwe and Mpigi branches. The specific objectives of the study were to; examine the effect of setting employee objectives on organizational performance, to assess the effect of monitoring and evaluation of employee performance on organizational performance and to assess the effect of rewarding of employees on organizational performance. The study employed the case study research design and adopted both qualitative and quantitative research approaches. Krejice and Morgan 2007 was used to select the sample size of 86 out of the total population of 110 employees. In addition, the study employed various methods to collect, analyze and interpret the findings from the questionnaires which were effectively administered. The findings revealed that organization performance is affected by management by objectives whereby if employees are included in setting of employee objectives, they add in more effort in whatever they do because they feel part of the organization hence improving organization performance, and continuous monitoring and evaluation by the managers provides continuous feedback to the employees hence showing their progress which thereafter leads to rewarding of the different employees who have obtained their set objectives hence motivating them. The study concludes that management by objectives is very crucial for the success of an organization and it is therefore important that employees should be part of setting objectives so as they know what is needed of them. The researcher went on and further recommended the managers to consult their subordinates while drawing up unit objectives in order for the corporate goals to be achieved, she also emphasized that managers should endeavor to build a true team and individual efforts together, and lastly managers and employees should periodically meet in order to review progress towards the realization of objectives. Further research was emphasized on management by objectives with more emphasis on its effect on profitability alone in an organization