Management By Objectives – A New Way Of Management

In 1965, George S. Odiorne completed a textbook titled, Management by Objective. The fact that the term “Management by Objective” has now become common nomenclature to company executives around the country attests to the success of Odiorne’s literary efforts.Management by Objectives (MBO) is a practical application of the reasoning behind the notion of goal-setting theory. MBO is a process in which employees participate with management in the setting of goals or objectives. An essential feature of an MBO program is that it involves a one-on-one negotiation session between a supervisor and subordinate in order to set concrete, objective goals for the employee’s performance. During the session a deadline is set for the measurement of accomplishment, and the paths to the desired goals and the removal of possible obstacles are discussed. After an established period of time has elapsed (typically six months or year), the supervisor and subordinate meet again to review the subordinate’s performance using the agreed-upon goals as a measuring stick.Odiorne’s concept of management by objective is based on an underlying premise that any system of management is better than no system at all. A secondary premise states that to be workable, any management system must bridge the gap between the theoretical and the practical.Research at such organizations as Black and Decker, Wells Fargo, and General Electric has shown that, on the whole, MBO programs can succeed. Because MBO relies on the established principles of goal setting, it has great potential for improving performance. Real-world constrain however, can sometimes reduce the positive impact of a goal-setting system.The notion that management activity should be directed towards the accomplishment of pre-established goals has considerable intuitive appeal. None of the conditions are at variance with acceptable manager conduct from either a social, legal, or common sense standpoint.Odiorne’s concept of management by objective is based on an underlying premise that any system of management is better than no system at all. A secondary premise states that to be workable, any management system must bridge the gap between the theoretical and the practical. A third important premise establishes that the appraisal of managerial performance is not an activity autonomous from other activities of the firm. In other words, it regards the appraisal process as only one of several sub-systems operating within the confines of a goal-oriented management system.Before proceeding into a discussion of the basic elements of the management-by-objective system several “statements of condition” seem warranted. Each of the following statements relates to the environmental conditions with which managers are confronted and establishes the setting for later determining the practical relevance of the management-by-objective system:A. Because the economic environment within which business firms operate has changed so drastically in recent years, a whole new set of requirements has been placed on companies and their managers.B. The preliminary step in the management-by-objective system dictates that managers identify, in some manner, organizational goals designed to meet the new requirements noted in A, above.C. Immediately following the identification of company goals, management must have available to it an orderly procedure for distributing or allocating responsibilities which are directed toward achieving those goals.D. In the practical world of business management, managerial behavior must become predominant over managerial personality. Furthermore, in the final analysis, results of the behavior (measured against established goals) become the basic criteria for good performance evaluation.E. Total management staff participation in goal-setting and decision-making is recognized for its social and political value even though its impact on production levels may be negligible.F. There exist no one best system of management. Moreover, since managerial activity is dependent, to a large degree, on each manager’s view of specific goals and the total economic system, his actions must be discriminatory.In its briefest form, Odiorne’s decision making system of management by objective contains the following basic elements: (1) Establish an objective before you begin; (2) Collect and organize all of the pertinent facts; (3) Identify the problem and its causes; (4) Work out a solution and some options; (5) Screen options through some decision criteria; (6) Establish some security actions to enhance the probable success of the solution; (7) Gain acceptance of the decision; (8) Implement the decision; and (9) Measure the results. Each of the nine elements shall now be considered in more detail.A positive feature of an MBO system lies in its emphasis on establishing specific measurable goals. In fact, a goal is un-acceptable or inadmissible in an MBO system unless in is measurable You may think that this is impossible for all goals, especially those for those of top-level executives. Although it is difficult to set measurable goals at the higher levels of an organization, it is nonetheless possible. For example, one such quantifiable goal might be that an institutional will be ranked in the top ten by an annual polling of executives in the same industry. 0r the head coach of a college football team may set a goal of making the top 20 in the Associated Press’s coaches’ poll within the next five years. Some more typical goals would be to increase market share from 45 to 55 percent by the end of the next fiscal year, to increase annual production by 10 percent, or to increase profits after taxes by 3 percent. Some goals can be measured in simple yes or no fashion. For example, the goal of establishing a training program for sales personnel or completing a feasibility study by a certain date can he judged in a simple success or failure fashion when the deadline arises. Either such a project has been completed or it has not.Advocates of MBO believe that everyone in an organization could and should be involved in goal setting This includes all personnel, from the chief executive officer (who may set goals in consultation with the board of directors) to the newest member of the clean-up crew. In practice, however, middle level managers and first line supervisors are more commonly involved in such goal-setting systems.Proponents of MBO systems also believe that supervisors must play a special role in the goal-setting process. Supervisors should view themselves as coaches or counselors whose role is to aid their subordinates in goal attainment. This role of coach/counselor extends beyond merely helping to identify and remove obstacles to goal attainment (for example, using personal influence to expedite shipments from another department). It also implies that supervisor will serve as a mentor-someone to whom subordinates can go with their work-related problems and assume that they will be treated with respect and support.One major obstacle to the success of an MBO program can be lack of support from top-level executives. If key people in the organization, especially the president and vice presidents, do not fully endorse MBO, their lack of support will likely he felt and responded to at lower levels. The net effect will be a decided lack of enthusiasm for the program.Problems may also arise if managers are not interested in having subordinate to participate in the goal-setting process. Some managers prefer to retain an evaluative and superior posture and are uncomfortable with the notion of being a coach or counselor to their subordinates.Personality conflicts between superiors and subordinates are another potential problem for goal-setting systems, as is competitiveness. A superior who feels threatened by talented subordinates may do little to help them be more successful and, consequently, more visible, In addition, subordinates may hesitate to set challenging goals for fear of failure and its consequences.MBO systems also tend to emphasize the quantifiable aspects of performance while ignoring the more qualitative aspects. This is an understandable tendency, since participants in MBO systems are encouraged to focus on such dimensions of performance.Qualitative aspects of performance, which are often more difficult to identify and measure, are likely to be overlooked or de-emphasized. For example, how can the quality of service that an organization provides or an organization’s image in the local community be defined and measured? Because the success of an MBO system rests heavily on the quality of the relationship between supervisor and subordinates, the degree of trust and supportiveness that exists in a work unit is a central concern.For an MBO system to be highly successful, these elements are critical prerequisites, The absence of trust and supportiveness severely restricts the system’s effectiveness. Despite these many potential obstacles, the track record of MB0 has been fairly good, In a recent review of the research literature devoted to MBO, Robert Rodgers and John E. Hunter examined 70 reports that included quantitative evaluations of MBO programs. Their findings showed productive gains in 65 of 70 evaluation studies. The average productivity increase was 47 percent, while cost data showed an average savings of 26 percent. Employee attendance was also shown to improve by 24 percent. Follow-up surveys of the level of top-management support for the programs revealed that productivity increased by 57 percent when top-management commitment was high, 33 percent when commitment was average, and only 6 percent when commitment was low.MBO has passed through several phases since its introduction in the l95Os. Initially, MBO was greeted with much enthusiasm by managers and management scholars, During the late 1960s and early 1970s, MBO appeared, so be “sweeping the nation.” Presently, MBO is viewed more objectively by scholars and practitioners as a tool that can be most effective under specific favorable conditions. It is now becoming passé even to invoke the initials MBO. In fact, the principles and philosophies of MBO have become so emotion-laden in the minds of managers than an organization will often introduce an MBO system under a different label. For example, an organization may establish a program called START (an acronym for Set Targets and Review Them) or GAP (Goal Acceptance Program). The mechanics of such programs are likely to borrow heavily, if not totally, from the MBO approach. In short, the trend is toward putting old wine into new bottles, with recognition that mutual goal setting is not a panacea for all organizational problems under all possible circumstances.This theory is helping in several ways.

Its capability for multiple management levels to set, assign, approve, comment, modify, deny or just view MBO metrics and scores.
Its collaboration of performance metric settings between employees and managers.
Its visibility of MBO status progressing through workflow steps.
It configurable workflows to conform to internal business rules and processes.
It automatically estimates bonus payouts based on objective scores.
It is a simplified process to approve scores and manage updates.

B2B Content Marketing – It Takes A Village

This year Content Marketing Institute and MarketingProfs published their 7th B2B Content Marketing Benchmarks, Budgets and Trends – North America study. While there are many studies that are published every year, this is one that I truly analyze and review as it is full of insights and shows a very clear picture of where B2B marketers are on their path to maturity.The study was a bit different this year with some new questions and sections, but overall, comparing this year to previous studies provides insight into how B2B marketing organizations are succeeding and in many cases, continuing to be challenged with the discipline of content marketing.It Takes a Village-It was surprising to me to see that 55% of organizations have small teams (some only one person) that are responsible for serving the entire organization with content. Less than 40% of those surveyed said they have a dedicated organization and/or people throughout the organization.Good content that engages buyers and aligns to the buyers purchase process is not easy to create. It takes time to understand your buyer, their pain points and challenges and their buyers journey. According to CEB, in a typical B2B buying cycle there are on average 6.8 people involved in the buyers committee all of whom want specific content that is relevant to their role.With this being the case, how is it expected that only a handful or only one person will be able to create compelling content? In order for content to be done properly and produce value, there must be a team dedicated to it.Measurement Must Be a Priority-When asked, “Is it clear what an effective or successful content marketing program looks like?” only 41% responded yes. The other with 59% responded with an unsure or a no. While this may be while only 28% are mature or sophisticated, the need for measurement has never been more apparent.According to the study the following are true:

29% of a B2B marketing budget is spent on content marketing

39% of organizations will increase their content marketing spend

45% will spend the same amount next year as they did this year

That is quite an investment to make without an understanding of the results. While producing relevant and engaging content is crucial, it is just as, if not more important to know the impact these investments are making on an organization.The Metrics Do Not Align to Goals-Respondents to the study listed lead generation as the number one goal for their marketing efforts. Yet when asked “Which metrics does your organization use to determine how well its content marketing is producing results?” only 57% stated they were measuring sales lead quality.If the goal of content is to generate demand, simply measuring web traffic (78% do as the leading metric) will not give any indication on success or failure. If B2B marketers are going to improve on measuring value, they must measure that which aligns to their goals.

How would you characterize the success of your organizations current overall content marketing approach? 22% stating very or extremely successful and 53% stating moderately successful (I am not sure the goal of organizations is to be marginal)

How does the success of your organizations current overall content marketing approach compare with one year ago? 62% saying either somewhat more or much more successful

There is Improvement, But Still a Long Way To GoWhile 72% of organizations reported more effectiveness with their content (with web visits are the leading metric this is questionable), the telling statistics that tell the true story of how organizations are faring with content marketing were the following:

Only 37% of B2B organizations have a documented content strategy (sorry but if you say you have one but it is documented, YOU DO NOT HAVE A STRATEGY!!)

Only 22% say their organizations approach to content marketing is very or extremely successful

Only 28% of respondents stated their organizations are either sophisticated or mature with content marketing

Only 34% state their organizations are extremely or very effective at meeting their content marketing goals

With all of the attention given, money invested and time spent on content, one would think we would be much further along. What is more perplexing with these low numbers is that 63% of respondents stated that their organizations were either extremely or very committed to content marketing.I believe it is time (I have said this many times before) for marketing leaders to truly take a look at this commitment to content and rather than invest in more content production, invest in understanding buyers at a deeper level so that their content can be better informed. Simultaneously, invest in better enabling and equipping content marketers with the needed skills so they can perform their roles at the highest levels.Content marketing is not going anywhere anytime soon and is necessary to engage, nurture and convert buyers and build customer relationships, but year over year the numbers either stay flat or decline indicating we have a problem. Hopefully 2017 (I said this about 2016) is the year marketing leaders take the time to address it.

Digital Health Market Trend, Outlook 2025

Digital health is a new age platforms that deals with prime focus on consumer centric healthcare approach which results in efficient and quality healthcare at much lesser cost than traditional healthcare ecosystem. It is broad term that covers various aspects of healthcare ecosystem bind together with thread of digital mediums in order to provide most handy health care service with ease of access to all stakeholders. It covers various stakeholders of healthcare ecosystems such as healthcare provider, patients, payer, pharmaceutical companies and other new stakeholders such as information and technology companies. Overall digital health covers diagnosis, treatment, consultation and long term care services at economy of cost with greater access than old location based system of healthcareMarket DynamicsVarious combinations of factors makes the market for a lucrative. Larger number of population crossing age 60 and above worldwide leads to higher requirement of healthcare needs with more emphasis on long term care and chronic disease care. Developed markets such as U.S. and Europe are especially witnessing higher number of population 65 and above. According to the U.S. Census Bureau’s report of 2017, there were 47.8 million people aged 65 years and older in the U.S. in 2015 accounting for 14.9% of the total population, a 1.6 million increase from that in 2014. Europe is currently having highest 65 years and above age population which is 25% of entire population according to the Population Prospect Report of the United Nations published in 2017. Tele Care and Tele Medicine are important digital health platform for this population as they don’t have to take efforts of visiting physician in person. Another important factor for growth of the digital health market would be high technological penetration in the digital health domain. For instance, cloud based electronic medical record which could be shared amongst entire healthcare stakeholders would make entire health operation smooth and efficient.Key features of the study:

This report provides in-depth analysis of the market and provides market size (US$ Million) and Cumulative Annual Growth Rate (CAGR %) for the forecast period (2018 – 2026), considering 2017 as the base year

It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market

This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends, regional outlook, and competitive strategy adopted by the leading players

It profiles leading players in the market based on the following parameters – company overview, financial performance, product portfolio, market presence, distribution strategies, key developments and strategies, and future plans

Key companies covered as a part of this study include Allscripts Health Solutions, Inc. McKesson Corporation, Cerner Corporation, Siemens Healthineers, GE Healthcare, Koninklijke Philips N.V., Qualcomm Inc., Proteus Digital Health, Inc., Athenahealth, Inc., Cisco Systems

Insights from this report would allow marketers and the management authorities of the companies to make informed decision regarding their future product launch, technology up-gradation, market expansion, and marketing tactics

The market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts

Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the market

Get PDF Research Brochure for more Professional and Technical Insights: https://www.coherentmarketinsights.com/insight/request-pdf/1909Detailed Segmentation:

Global Market, By Technology Platform

Tele health

Tele Medicine

Tele Care

mHealth

Information Systems

EMR/HER

Clinical Decision Support System (CDSS)

Computerized Physician Order Entry (CPOE)

Others

Diagnostic and Monitoring Devices

Therapeutic Devices

Digital Medicine

Respiratory Therapy Devices

Insulin Pumps

Others

Others

Global Market, By End Users

Business to Consumers

Business to Business

Global Market, By Geography

North America

By Technology Platform

Tele health

Tele Medicine

Tele Care

mHealth

Digital Health Information Systems

EMR/HER

Clinical Decision Support System (CDSS)

Computerized Physician Order Entry (CPOE)

Others

Diagnostic and Monitoring Devices

Therapeutic Devices

Digital Medicine

Respiratory Therapy Devices

Insulin Pumps

Others

Others

By End User:

Business to Consumers

Business to Business

By Country:

U.S.

Canada

Request for Customisation: https://www.coherentmarketinsights.com/insight/request-customization/1909About Coherent Market Insights:Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.Contact Us:Mr. ShahCoherent Market Insights1001 4th Ave, #3200Seattle, WA 98154Tel: +1-206-701-6702Email: [email protected]

Short, Intermediate, And Longer – Term Impacts On Home Sales, When Rates Rise!

For many reasons, some, economic, while others, related to the pandemic – related, so – called, fatigue, etc, home prices, in most areas, have gone up, at, or, near, record amounts! Because of the prolonged period of artificially – created, low – interest rates, mortgage rates, have been at historic lows! Since, for most home buyers, using financing is essential to affording a purchase, when a low rate, causes cheap money, and, thus, the ability to afford more home – for – the – buck, prices usually rise! It permits qualified buyers to qualify for more money/ loan, because the ratio of monthly mortgage, to overall income, is artificially – reduced! How long will this trend continue, will it become the new – normal, will previous trends/ cycles return, and how will pricing be affected, in the immediate, intermediate, and longer – run, are, all factors, to consider! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, some possibilities, to consider, and understand.

1. Short – term: Since, the Federal Reserve Bank, announced, they planned to raise rates, three times in 2022 (of course, this was before the potential implications, and ramifications, from the Omicron variant), many feel pressure, to act quickly, to take advantage of today’s low rates, before they go up! Three increases will probably translate to, at least, a 0.75% higher rate, which will translate, for most mortgages, to hundreds of extra dollars, per month. Some things to consider, and pay attention to, is, this rate of increased home prices, will, probably, not continue, especially, at such a large degree! How longer one, expects to keep a specific house, is, one issue, to consider, thoroughly, and wisely, before proceeding!

2. Intermediate – term: Although, many believe, to – know, the precise timing of any projected rate – hike, is uncertain! The Fed has changed, and/ or, altered its strategies and approaches, in the past, What the intermediate – term, may bring, including potential inflationary pressures, how long the economic conditions, and unknown factors, related to the pandemic, etc, will determine, largely, what this phase, may bring! In addition, the attitude, and perceptions of buyers, and their confidence, etc, largely impact this real estate market!

3. Longer – term: In the longer – run, will things, restore, to what we have seen, so often, in the past, which is, alternating cycles, between, Sellers, Buyers, and Neutral Markets? The possibilities, include: a continued large escalation; a more – gradual, but persistent – one; some leveling; and/ or, will we see, at least, in certain areas, some sort of falling prices, for a period.

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