Management by objectives

Vocabulary

clear goals – четкие цели

regardless of the specific job – не взирая на специфику работы

to set objectives – устанавливать цели

to achieve objectives – достигать цели

subordinates – подчиненные

to develop objectives – совершенствовать цели

to put the plan into action – ввести план в действие

units – зд. отделы

day-to-day direction – повседневное руководство

supervision of employers – контроль за служащими

promotion – продвижение по службе

to measure the performance of their staff – оценить действия (работу) своего персонала

to consider the needs of the future – учитывать будущие потребности

public authorities – органы государственное (местной) власти

to have a say in – участвовать в обсуждении какого-либо вопроса

to assess the individual’s performance – оценивать индивидуальное исполнение работ

prejudices – предвзятое мнение

Management is composed of a team of managers who are in charge of the organization at all levels. Their duty is to make sure that company objectives are met and to see that the business operates efficiently.

Management by objectives (MBO) is a system which was first described by Peter Drucker in 1954. Since then, MBO has attracted enormous interest from the business world, and its principles have been applied in many of the world’s largest companies.

P.Drucker emphasized that an organization and its staff must have clear goals. Each individual must understand the goals of the enterprise he/she works for, and must make contribution to them. It is also vital that the individual knows what his/her manager expects of her. An individual must know what sort of results he/she is expected of.

Various kinds of MBO are used in organizations. But regardless of the specific job, most managers perform four basic functions. These management functions are planning, organizing, directing, and controlling.

Planning involves setting objectives and deciding how the organization can achieve them. This, in its turn, involves developing strategies, plans and precise tactics. If an organization uses MBO approach, it must pay careful attention to planning. A special feature of MBO is that the subordinates participate with the manager in developing objectives. Planning is listed as the first management function because the others depend on it.

Organizing, the second management function, is the process of putting the plan into action. Managers analyze and classify the activities of the organization and the relations among them. This involves allocating resources, especially human resources, so that the overall objectives can be attained. Managers divide the work into manageable activities and then into individual jobs. They select people to manage these units and perform the jobs.

Third is the day-to-day direction and supervision of employees. Managers have to communicate objectives to the people responsible for attaining them. In directing, managers guide, teach, and motivate workers so that they can reach their potential abilities and at the same time achieve the company goals that were established in the planning process. In this phase they make decisions about pay and promotion.

In the last management function, controlling, managers have to measure the performance of their staff, to see whether the objectives set for the organization as a whole and for each individual member of it are being achieved. If major problems still exist and goals are not being achieved, then it is necessary to make changes in the company’s organizational or managerial structure.

Obviously, objectives occasionally have to be modified or changed. It is generally the job of a company's top managers to consider the needs of the future, and to take responsibility for innovation, without which any organization can only expect a limited life. Top managers also have to manage a business's relations with customers, suppliers, distributors, bankers, investors, public authorities, and so on, as well as deal with any major crises which arise.

There are many benefits of MBO. The system helps the subordinates to see clearly their role in the organization. They have a say in how their job is performed, and what goals should be. Workers feel more responsible and motivated. MBO is a good technique for assessing the individual’s performance. People are judged on results, rather than on the personal feelings and prejudices of the managers.

WORD STUDY

Ex. 11. Study the different meanings of the following words and use them to translate

the sentences.

act(v) 1. действовать, поступать; вести себя

2. действовать, работать (быть исправным)

3. влиять, действовать.

act for представлять, действовать от лица (кого-л.).

act (n) дело, поступок, деяние

activity деятельность, активность

1. Business activity was paralyzed.

2. This weather acts on my nerves.

3. He committed a heroic act.

4. As the chairman is ill, I am asking you to act for him.

5. The brake refused to act.

6. Has the medicine acted?

7. Don't act from instinct.

8. The soldier acted like a real hero.

9. How did they act towards you?

10. The main activity of this enterprise is timber processing.

Ex. 12. Match the verb with an appropriate preposition and word-combination to make a

phrase. Translate them into Russian.

to apply to put to work to participate to make decisions to take responsibility to deal to be judged

into for in about with on

enterprise innovation action crises results a company pay developing objectives

Ex 13. Group the following words into 9 synonymous groups.

to achieve responsibility method target to measure rule

purpose to highlight to attain design profession project

principle tremendous axiom to stress duty job

occupation plan to estimate enormous vast goal

to evaluate objective huge to reach to emphasize obligation

Ex. 14. Match the verbs on the right with the nouns on the left.

to attract to make to expect to set to develop to pay to motivate to achieve to measure to consider to manage to have

results workers objectives interest attention goals strategies contribution a business’s relation a say the needs performance

Ex. 15. Match the words with their definitions.

_____ plan _____ staff _____ goal _____ individual _____ strategy _____ tactics _____ direction _____ innovation _____ authorities _____ crises

a. management, control, or guidance b. a detailed scheme, method, etc., for attaining an objective c. something newly introduced, such as a new method or device d. a group of people employed by a company, individual, etc e. the aim or object towards which an endeavour is directed f. an unstable period, esp one of extreme trouble or danger in politics, economics, etc g. a particular long-term plan for success, esp in business or politics h. the manoeuvres used or plans followed to achieve a particular short-term aim i. a single person, esp when regarded as distinct from others j. a person or group of people having the power or right to control, judge, or prohibit the actions of others, such as a government, police force, etc

Ex. 16. Translate the words and phrases given in brackets.

1. Management is composed of (команды) of managers who (отвечают за) the organization at

all levels.

2. Managers (должны сообщать) objectives to the people (ответственным) for attaining them.

3. Top managers also have (вести деловые отношения) with customers, suppliers, distributors.

4. It is also (жизненно необходимо) that the individual knows what his manager expects of him.

5. Their duty is to make sure that (цели компании достигнуты) and to see that the

(предприятие работает эффективно).

6. They select people (управлять) these units and (выполнять) the jobs.

7. There are (большой эффект) of MBO.

8. In this phase they (принимают решения) about pay and (продвижении по службе).

9. Most managers perform (четыре основные функции).

10. The system helps (подчиненным) to see clearly their role in the organization.

Ex. 17. Generate other forms from these words.

Verb	Noun	Adjective
to measure
		responsible
	motivation
	approach
to describe
		applied
to expect
	base
		listed
to communicate
to establish

Ex. 18. Translate the text into Russian in written form.

Every business has to decide where it is going. What it is trying to achieve. Words like objectives and targets are used in management theory. Whether these targets are related to items such as sales or budgets, they are broken down into sub-targets as they go further down the organizational hierarchy. The managers at the various levels in the structure are given these targets or objectives to achieve.

Sometimes they are given considerable freedom to achieve the targets in the way they see best. Sometimes their independence is limited, perhaps very limited. Subject to these constraints a manager has certain clear-cut functions. First, he has to plan to look ahead to anticipate. When you drive a car you look as far ahead as you can see what hazards lie ahead. If you see some children playing in the road ahead you start to slow down, check your breaks are working and generally watch for trouble. What would you think of a driver who kept his eyes on the road six feet in front of his bonnet? A manager who is able to anticipate problems has more chance of coping with them.

Organizing is the second management function. In this phase managers decide on the positions to be created and determine the associated duties and responsibilities. Staffing, choosing the right person for the right job, may also be included as part of the organizing function.

Another function of managers is to control. We have already seen that managers are expected to achieve targets of some sort or another. A manager has to keep these targets clearly in mind when he is involved in the decision-making process.

COMPREHENSION

Ex. 19. Multiple choice. Complete the following sentences using the information from the

text.

1. Management by objectives (MBO) is a system which was first described by _______ in 1954.

a. Adam Smith

b. Peter Drucker

c. Karl Marx

2. Most managers perform _________ basic functions.

a. four

b. five

c. three

3. There are many __________of MBO.

a. advantages

b. disadvantages

c. benefits

4. P.Drucker emphasized that an organization and its staff must have _______ goals.

a. appropriate

b. fundamental

c. clear

5. _______________ participate with the manager in developing objectives.

a. the subordinates

b. the workers

c. the employees

6. ________ is the second management function.

a. planning

b. organizing

c. direction

7. Managers make decisions about _________

a. pay

b. promotion

c. both

8. Without innovation any organization can only expect __________

a. a long life

b. a limited life

c. a short life

Ex. 20. Write questions to ask about the missing information.

1. Managers have to communicate objectives to ___________

__________________________________________________________________________?

2. Managers analyze and classify______________

__________________________________________________________________________?

3. Management by objectives was first described by _________________

__________________________________________________________________________?

4. Planning involves __________________

__________________________________________________________________________?

5. Each individual must understand _________________

__________________________________________________________________________?

6. The system helps the subordinates ___________________

__________________________________________________________________________?

7. Four management functions are ____________

__________________________________________________________________________?

8. Top managers also have to manage a business's relations with _______________

__________________________________________________________________________?

9. P.Druсker emphasized that an organization and its staff must have _____________

__________________________________________________________________________?

DISCUSSION

The human being is a continual problem-solver, decision-maker, and innovator. Analyze your previous week (day, month, year) and describe the situations when you had to be “a decision-maker”, “a problem-solver” and “an innovator”.