Abstract
The
study examine
the application of management by objective (MBO) on organizational efficiency:
a study of Ebonyi State Ministry of Works and Transport Abakaliki. The
objectives of the study are to determine the influence of goal setting on
organizational performance, to examine how employee participation in decision
making enhance employee productivity and to examine the influence of objective
feedback on organizational efficiency. Three research questions were formulated
in line with the research objectives. Survey design was adopted. The population
of study consisted of 280 staff of Ebonyi State Ministry of Works and Transport
Abakaliki. The sample size is 164 selected through the application of Taro
Yamane technique for sample size determination. The research instrument used
was a structured questionnaire. The statistical method adopted for data
analysis was the Chi Square. The result of the study shows that goal setting
has significant influence on organizational performance, employee participation
in decision making enhance employee productivity, objective feedback enhance
organizational efficiency. From the findings, it was recommended that top
management of organizations should make the organizational goal clear to each
employee and as well set targets for each employee. The employee targets should
be geared towards achieving the collective goal of the organization, employee
participation in decision making should be paramount and that objective
feedbacks should be taken seriously, as it is the means of assessing
performance against the set goals.
Table of contents
CHAPTER
ONE
INTRODUCTION
1.1 Background
to the Study
1.2 Statement
of the problem
1.3 Objective
of the Study
1.4 Research
Question
1.5 Research
Hypothesis
1.6 Significance
of the study
1.7 Scope
of the study
CHAPTER
TWO
REVIEW
OF RELATED LITERATURE
2.1 Conceptual
Framework
2.1.1 Components
of Management by Objective
2.1.2 Management by Objectives as a Transformation
Process
2.1.3 Goal
Setting and organizational Performance
2.1.4 Importance
of Goal Setting
2.1.5 The concepts
of employee participation and productivity
2.1.6 Benefits of Employee Participation in Decision
Making
2.1.7
Objective Feedback and Organizational
Efficiency
2.2
Empirical Review of Literature
2.3
Theoretical Framework
2.3.1
The Goal Setting Theory
2.3.2
The Role Stress Theory
CHAPTER THREE
RESEARCH METHODOLOGY
3.1
Research Design
3.2
Area of Study
3.3
Population of the Study
3.4
Sample Size
3.5
Instrument for Data Collection
3.6
Validation of instrument
3.7
Reliability of the instrument
3.8
Procedure for Data Distribution and Collection
3.9 Procedure for Data Analysis
3.10
Decision Criteria for testing of hypothesis
CHAPTER
FOUR
DATA
PRESENTATION AND ANALYSIS
4.2 Test of Hypotheses
4.3 Summary of findings
CHAPTER
FIVE
DISCUSSION
OF FINDINGS, SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Discussion of Findings
5.2
Summary
5.3
Conclusion
5.4
Recommendations
CHAPTER ONE
INTRODUCTION
1.1 Background
to the Study
Management
of organizations in today business environment needs a lot of tools to be able
to administer effectively in the day to day running of the business. Management
by objectives is one of such tools. It is a way of getting improved results in
managerial method whereby the superior and the subordinate managers in an
organization identifies major areas of responsibility, and set some standards
for performance and the measurement of results against those standards (Derek
2005). Nwosu (2008) described management by objective (MBO) as a technique of
management that attempts to relate organizational goals to individual
performances and development through the involvement of all levels of
management. MBO is thus a management technique that involves the application of
collective objectives, action, vision, insight, and inspiration in
organizations in such a way that fundamental changes in direction, development,
productivity, perceptions or beliefs occur in both the employees and the
organization.
Management
by Objectives (MBO) is a theory of management proposed by Drucker (1956). It
relies on the defining of objectives for each employee and then comparing and
directing employee performance against the objectives that have been set.
Greenwood (2001) defined MBO as a broader term that encompasses managerial
decisions and actions that help to ensure that an organization formulates and
maintains a beneficial fit with its’ environment and consistent with its
objectives and goals. Tahir (2008) described MBO as involving the establishment
and communication of organizational goals, the setting of individual goals in
line with the organizational goals, the periodic and final review of
performance in relation to the organizational goals.
Management
by objectives is also called managing by objectives. However, there have been
certain individuals who have long placed emphasis on management by objectives
and by so doing have management by objectives refers to as a structured
management technique of setting goals for any organizational unit. Odiorne
(2011) defines MBO as a system of management whereby the superior and
subordinate jointly identify objectives, define individual major areas of
responsibility in terms of results expected, and use these objectives and
expected results as guides for operating the unit and assessing the
contribution of each of its members.
Besides,
Odiorne points out that management by objectives is a "system of
management," an overall framework used to guide the organizational unit
and outline its direction. He went further to point out that "the superior
and subordinate jointly identify the objectives". In other words, it is a
participative management procedure that requires commitment and co-operation.
The definition deals with identifying the "results" that are
expected. Thus management by objectives concentrates on the output of the
organization evaluating people by assessing their contribution to this output.
Management
by objectives was define by Koontz and O'Donnell (2008) as a technique of system
or method of management whereby the superior and subordinate managers of an
organization agree on its broad goal, translate these goal into a chain of
specific short term goals, define each individuals major areas of
responsibility in terms of result expected and continually review the
accomplishment as the sole basis of assessing and rewarding them. Management by
objectives gives the employee the opportunity to participate in decision
making. It assumes that the employees has been properly selected and trained,
and is informed that the employees will be responsible for achieving the
desired results in the organization.
MBO involves the employee in participative
goal setting. The goals become a form of feedback or knowledge of results.
Latham and Yukl (2005) indicate the components in the process of goal setting
as: (a) goal setting itself, (b) participation in goal setting, and (c)
objective feedback or knowledge of results. Goal setting itself is positively
related to performance. Consistent and significant improvements in
organizational performance as a result of goal setting have been found in
studies by (Bell & Mitchell, 2006; Bryan and Locke, 2007; Locke, Cartledge
and Knerr, 2010 and Ivancevich, 2015).
Setting
goals improves performance and the more difficult it is to reach the goals the
better the performance, up to the point where goals are perceived as
impossible. Participation has mixed effects on performance. Effectiveness seems
to depend on the amount and type of participation (Latham & Saari, 2009.
Increased level of participation lead to satisfaction improvements, although
this relationship appears to depend on the needs of the employees (Steers,
2006).
Objective
feedback or Knowledge of results tends to increase performance levels, but the results
are more apparent when it is tied to goal setting (Locke and Bryan, 2009 and
Conlon, 2010) and the individual values (Braunstein, Klein, and Pachla, 2013).
Knowledge of results also improves satisfaction (Cook, 2008 and Hackman &
Lawler, 2011) although this relationship seems to be moderated by attributes of
the individual.
Organizational
efficiency is an organization’s ability to implement its plans using the
smallest possible expenditure of resources. It is an important factor in the
firm’s organizational effectiveness, this being the ease and degree of success
with which the organization is able to accomplish its aims.
Ebonyi
State Ministry of works & Transport was established to deliver the highest
standard of excellence, quality and safe service to Ebonyians. The ministry
strive to not only build projects, but to also build strong infrastructural
development in the State, with commitment towards exceeding expectations. Engr.
Fidelis Kings Nweze (MNSE) is the political Head of the Ministry. He is an
Engineer by profession.
The Ministry of Works and Transport is
subdivided into five functional Departments. The divisions are for
administrative convenience and for the delivery of policy thrust of the
Ministry. The Departments includes, Civil Engineering, Mechanical Engineering,
Planning Research and Statistics, Finance and Accounts and finally
Administrative Department. These Departments are manned by highly trained and
professionally competent personnel employed and posted to the Ministry by the
Civil Service Commission of Ebonyi State.
The
broad objectives of the Ministry are to construct, reconstruct and rehabilitate
urban and rural road networks in Ebonyi State. To achieve the above objective,
the Ministry collects and maintains a scientific inventory on terrain, soil
type and distance of all roads in the State. Designs and estimate cost of
construction of selected roads.
1.2 Statement of the problem
Civil
service job in Nigeria is widely regarded and misconceived as nobody’s job. A
notable proverb says that “a goat that belong to everybody sleeps outside a
tent”. This proverb goes a long way in explaining the situation of things in
many government establishments in Nigeria. Many public organizations in Nigeria
suffer from poor management and almost zero productivity. This can be traced to
several causative factors that ranges from poor remuneration to poor management
and its resultant zero commitment from the employees. This problem of zero
commitment consequently results in low employee productivity, poor
organizational performance and inefficiency on the part of the organization.
Management
by objective (MBO) was expected to help put an end to these man made problems
confronting public sector organizations in Nigeria. Management by objectives gives
the employee the opportunity to participate in decision making and return
feedbacks based on the organizational set and streamlined goals. It assumes
that the employees has been properly selected and trained, and is informed that
the employee will be responsible for achieving the desired goals in the
organization. It is based on the aforementioned problems in public sector
organizations and the roles management by objective plays in restructuring for
optimum efficiency in organizations that the present study seek to examine the
application of management by objective on organizational efficiency with a
particular reference to Ebonyi State Ministry of Works and Transport Abakaliki.
1.3 Objective
of the Study
The
major objective of the study is to examine the application of management by
objective (MBO) on organizational efficiency: a study of Ebonyi State Ministry
of Works and Transport Abakaliki.
The
specific objectives are:
1. To
determine the influence of goal setting on organizational performance.
2. To
examine how employee participation in decision making enhance employee
productivity.
3. To
examine the influence of objective feedback on organizational efficiency.
1.4 Research
Questions
The
following research questions were formulated to guide the study:
i.
How does goal setting influence
organizational performance?
ii.
How does employee participation in
decision making enhance employee productivity?
iii.
How does objective feedback enhance
organizational efficiency?
1.5 Research
Hypothesis
The
following research hypotheses were formulated to guide the study:
1. Ho:
goal setting has no significant influence on organizational performance.
H1:
goal setting has significant influence on organizational performance.
2. Ho
employee participation in decision making does not enhance employee productivity.
H1:
employee participation in decision making enhance employee productivity.
3. Ho:
objective feedback does not enhance organizational efficiency.
H1:
objective feedback enhances organizational efficiency.
1.6 Significance
of the study
The
findings of the study will be of immense benefit to:
ü Top
management of organizations: the results of this study will be of great benefit
to the top management of organizations, be it private or public, because it
will guide them in setting organizational goals and ensuring that the
sub-ordinates are directed and properly supervised towards achieving the
organizational goals.
ü Employees
of an organization: the findings of the study will be of great benefit to the
employees of an organization because it will guide them on pursuing the
organizational goal. On this note, each employee is given a target to achieve.
The employee then works towards achieving such goal which was as well drafted
from the general organizational objective(s).
ü The
Researcher: conducting this study is of immense benefit to me the researcher
because carrying out this study widens my academic horizon.
1.7 Scope
of the study
The
study examines the application of management by objective on organizational
efficiency. The content scope covers management by objective (MBO), employee
productivity and organizational efficiency. The geographical scope is Abakaliki
urban.
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