This assignment will describe the “new” leadership style ‘management by objectives’ as well as its importance for big and complex companies. The theoretical background will give an overview about what management by objectives is and how it could be put into action (i.e. instruments).
Next there will be an experience report about getting in contact with this type of management.
In the fourth part, there will be described what was learned by treated this topic.
The last part will compare the ‘traditional’ view of leadership to the new developed leadership by target agreement. The Conclusion will sum up the treated topic and give a final statement about leadership.
The intention of the paper is to get an appreciation of what management by objectives is and how it could be an enrichment for every type of company.
This topic was chosen due to the importance of the leadership style especially in Germany. In addition management by objectives is not only a way to lead big companies. All types of companies and countries could profit from this type of management.
2. Theoretical Background – Targets instead of orders
Every human being has got targets, likewise every company has some. The best way of doing business is to reconcile both targets. But how can companies inspire the employees for their own goals?
The solution is targets instead of orders. And therefore management by objectives could be a strategy with which every employee can trace his or her own target. Every special goal will contribute to the main company aim.
The next paragraph describes the basics about management by objectives. In 2.2 the important instrument Balanced Scorecard will be introduced.
2.1 Basics about Management by objectives
Management by objectives implements the strategic aims of the company into the employee’s individual targets. The core of it is the agreement of objectives in which the reward for being successful is committed, as well as sanction for failure....