THE IMPACT OF MANAGEMENT BY OBJECTIVE (MBO) ON THE PERFORMANCE OF AN EMPLOYEE (A CASE STUDY OF LOPA ENERGY CO LTD)

One of the many problems facing the business community has been the problem of integrating the objectives of the employees with that of the organization for the achievement of the organization objectives. 

Even when such integration has been made there should be a dear method or system of measurement of the contribution of employees to the organizational achievement.  Organizations that practice management by objectives seem to be on the positive threshold of solving this problem.

Management by objective (MBO) is a systematic approach to managing an organization practicing the basic management functions of planning organization staffing leading and controlling.

Management by objective is a result oriented all functional area (LOPA energy co.ltd). The distinguishing characteristic of management by objective (MBO) is its emphasis on results achievement of objective.  It is based on a  concept of human motivation.  Accordingly it places emphases on the involvement of the employee in planning directing and controlling aspects of the job what will be done when will it be dome and how will it be done?

The underlying belief is that this involvement of employee leads to commitment and if an employee is committed he can be directed to perform in manner that positively contributes to the achievement of organizational objects.  The MBO afford both the superiors and subordinates the opportunity to sit together and jointly identify common goals of enterprise define individual major  areas of responsibility term of the results expected of him and use these measures as guides for operating the unit and assessing the contribution of each of it misers. Paul Hersey et al (1988) this leads to the four basic component of the MBO system. 

Management by objective should guard against misdirection of common organizational goal by various functional managers.  Peter Durker (1981).  The in depth in the assumption is that organization that is well vested and excellence among its managers.  By jointly setting objectives between and the subordinate a mutual understanding results. Employee now accepts the responsibility and   works out action. Plan to meet performance standard set for the specific job.  MBO has psychological background.  In order to understand and benefit from MBO all employees who are includes in it must understand the psychological principles on which it is based.  When MBO is introduced into a company a training course is therefore given which explains Maslow’s  hierarchy of needs Hertzberg’s theory of motivational emphasize and Mc Gregor’s theory X and Y these emphasize the employees increase in job satisfaction when he feels a sense of achievement & involvement in his work.  Unless MBO is carried out in this spirit it because merely another method by which subordinates can be controlled.  Graham (1985)

For a business to grow responsibility is the only thing that will serve.  Druker (1981).

Acceptance of responsibility removes fear and spur up employees with an internal self motivation for performance.  When employee are motivated productivity increases. 

Through management by objectives (MBO) responsible worker emerge there is the contention that (MBO) brought employee satisfaction.  Nwachukwu (1988).  Employees contribution is recognized and rewarded through job performance appraisal system which is an ingredient of management by objective (MBO)

One of the major problem contorting the Niger civil service are intangible 50 are their result that is to serve the people.  This sound ambiguous and cannot easily be subjected to any quantitative and qualitative education. To determine when a civil service has become result oriented entails having specific limited dearly defined target to be accomplished within a given time Nwachukwu (1988).

Management by objective enable prudent utilization of  resources setting of prionties and time as Druker (1977) puts it only its target and defined can resource be allocated to their attainment priorties and dragline be set and somebody be held accountable for result”

Employees can be denominated if an employees perceives that his contribution has not been equitable compensated rewarded or recognized.

Coaching and counseling are used to guide subordinates to be on the objective track.

In summary management by objective in the recent    years has been one of the most striking developments in the managerial cut of getting result in an organization.  Significant number of firms small enterprise to giant public corporation report accomplishment of a most astonishing and profitable nature.  When MBO is correctly applied it enhance work simplification equitable compensation better utilization of equipment starting a new business inventory control and organization clarity (Mali 1972)

It is clear from the vast body of information and knowledge developing around (MBO) concept a dynamic management  way  of life is steadily maturing and will remain with as for sometime to come.  This is informed by the fact that management practitioners themselves are increasingly concerned with improving ther own effectiveness with the use of management by objective 

(MBO).  The researcher work will examine the impact MBO on the performance of the company LOPA Enugu Co.

Being a theoretically oriented research work theories by eminent scholars as they affect the research topic will be discussed.  The objectives scope and innovative material offered in this researcher paper should be of help to any manager at any organizational level who is interested in increasing the results and quality of output of his group or organization. 

Additionally the paper would provide meaning techniques increase their individual resulted in the context of their job responsibilities.  In only management employee are includes in the MBO system that is employees who are only salary group 10 and above even those without experience or the fresh recruits.

Conversely employees on salary group mine or below are excluded form MBO system irrespective of the many years of experience that have had on the job.  These level of employees performed what the company referred to as “assigned tasks”.  This study examined management staff of the company could make to the MBO system to facilitate accomplishment of the company’s goal and objectives.