The main aim of this study is to examine Management by Objectives as an instrument for organizational performance with focus on First Bank of Nigeria Plc. Management by Objectives 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, in which they will work, set some standards for good or bad performance and the measurement of results against those standards (Derek 2005: 156). 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 given impetus to its development as a system. Management by objectives prefers to a structured management technique of setting goals for any organizational unit. The major problem of this study is that management of companies in Nigeria lack sufficient techniques to make them manage effectively. Some of these tools are not used and when used they are not properly utilized. Management by objectives is not only a managerial strategy to achieve a well co-ordinated managerial goals, but it is also a popular management techniques that cut across or pervade all human activities namely business areas, educationed government, health care and non-profit organization. Unfortunately many of the organizations are yet to adopt this technique in enlisting commitment and support of their staff. The major objective/hypotheses of the study was to determine the various problems affecting management of objectives as an instrument for organizational performance and the level of participation of both managers and employees in the setting of goals to be achieved in the organization. Data were collected from both primary and secondary sources. The major sources of primary data were direct oral interview and questionnaire which was conducted among the staff. The major instrument used in the data collection was questionnaire. The data were presented in tables as frequency distributions and in analysis. In testing the hypotheses, the statistical test of proportion (Z-test) was applied. The major findings of the study were: MBO helps to obtain total commitment of all employees to work together in order to achieve a common goal; that good and prompt salary, promotion as when due, good relationship with management and recognition of achievement improves performance of the workers and by so doing enhances organizational performance when management by objectives is been adopted. The study recommended that managers should consult his subordinates in drawing up unit objectives which goes up the hierarchy from where it is modified, collected, approved and distributed throughout the organisation. Moreso, there should be autonomy in implementation of plans once the objectives have been agreed upon, the individual should enjoy wide discretion in choosing the means for achieving the objectives without being directed by higher ranking manager. Finally, the study revealed a lot of positive implications and relevance of management by objectives to modern day management of organizations especially in Nigeria. In practical terms, the operations of management by objectives requires that each manager of a unit draws up his department objectives with his subordinates in line with the centrally stipulated corporate objectives and mission.
1.1 BACKGROUND OF THE STUDY
Management 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, in which they will work. Set some standards for good or bad performance and the measurement of results against those standards (Derek 2005: 156).
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 a structured management technique of setting goals, for any organizational unit.