Abstract
M.Com. (Business Management)
This dissertation is a study of the theoretical basis of management by objectives compared with a modified system used by Technikon Southern Africa, an academic institution. According to management by objectives theory, certain elements should be
present in any MBO system if the organization wishes to implement it successfully. The research was based on the hypothesis that the system (MBO) used by Technikon SA, although modified, would still lead to the effective and efficient management of the
institution.
The first part of this study describes the organizational climate of Technikon SA from its establishment to 1993. In particular, the discussion focuses on the need for an effective managerial system to manage the Technikon as an open system.
The second part of the dissertation provides a theoretical framework, based on literature from many sources, which describes the underlyning philosophy of management by objectives. This discussion also comprises the elements of a management by
objectives programme, as well as the possible benefits and pitfalls of such a system.
The third part of the study refers to the implementation successes of management by objectives in tertiary institutions.
This section essentially consists of a comparison of the management by objectives system used by the Technikon and the theoretical basis as it has developed since Drucker first introduced the concept.
In the final chapter conclusions based on the comparison are made. The most important conclusion is the rejection of the hypothesis that the system used by the Technikon is effective.
In the final analysis suggestions are made to improve the system used by the Technikon, the most important being the following:
management must change from an autocratic management style to one of participation and self-control; academics must be seen as professionals who can be trusted to achieve their objectives by way of their own planning and actions; objectives must be determined from key performance areas; goal-setting must be a participative process; all objectives must meet certain criteria; action plans should be implemented; management must be competent to motivate, coach and persuade; continuous feedback should be given by management; and the most important of all, management by obj ectives should be implemented as an integrating system with the emphasis on its use for performance appraisal. Further research is suggested to determine an effective system for Technikon SA.
Once again it was found that management by objectives, although an old concept, is effective, but only if management adheres to its basic principles