APPLICATION OF MANAGEMENT BY OBJECTIVE IN AN ORGANISATION (A CASE STUDY OF STANDARD TRUST BANK ENUGU)
ABSTRACT
During the early period of Industrial revolution traditional management concept was more pronounced when the entrepreneurs regarded their employees as part of their “tools” to accomplish their objectives. This attitude led to employee’s resentment of factory conditions, dismissals and other forms of punishment.
However, the growth in the size and the complex attitude nature of present day organization as well as the separation of ownership from management have together with other environmental pressure for change, necessities a shift of emphasis form traditional to a modern concept (Personnel – minded concept) which takes the employees and their individual needs into considerations. This development led to the introduction of MBO.
This concept though widely written and spoken about, is yet to find its full place in Nigeria Business Management in terms of Applications.
This work therefore is aimed at researching into the feasibility or applicability of the concept in our business management with a focus on commercialized bank.
The work took a look into MBO and shows that is a process by which managers and their subordinates participates jointly in setting goals, activities and target dates as well as evaluation of performance as it relates to establishment objects.
In conducting research, A sample of 138, respondents (managers of Standard Trust Bank) were interviewed using questionnaires and oral interviews. These respondent were selected using random sample techniques. Data obtained were analyzed using sample percentage methods, tables and charts.
Standard Trust Bank Ltd, a commercial Bank was used as case study, it was found that the organization embraces the ideals of MBO, by observing and applying to a substantial extent, most of the essential elements of the concept which include, management support of the concept, favourable structure, joint goal determination.
Goals made actionable, periodic joint review of accomplishment continued guide of subordinates, effective education and communication of the concept, reward based on contribution etc.
These therefore, prove the applicability of the concept in service organization.
The work also found out that the organization still has room for improvement as it was found wanting in certain areas of applicability of the concept, example, proper education of the lower level managers on the ideals and process of MBO, making goals verifiable etc. Recommendations on full and successful application were also put forward emphasizing proper planning, education, communications, setting of verifiable goals, performance appraisal and reward based on accomplishment.
