Management by objectives in Kosy Corporation
Management by objectives in Kosy Corporation
MA students study Nguyen Viet Cuong – Chairman Kosy Corporation
MA research student Hoang Thanh Huong – Faculty Lecturer Business Administration-National Economics University
Kosy Corporation is young company in the market. With the company mission is a global diversified businesses, the company is trying to apply the tools and methods of professional management. Oriented management with the goals to help lead the company effective control activities while continuing to expand markets and business areas. The following article discusses some of the content in the process of implementing management by objectives in Kosy Corporation.
1. Views of governance by targets
Management by objectives (management by objective – MBO) concept was introduced in Peter Drucker’s decades of 50th century. It is managed through the identification of targets for each employee and then compare their performance and direction to the implementation and achievement of objectives have been established. The purpose of MBO is to increase the performance of the organization in achieving the objectives of the organization’s goals through the staff throughout the organization.
There are two methods of implementing MBO. The first approach is to deploy from the top down (from the company level -> unit). This quick way of time but not encouraged to participate in the parts makers target companies. The second method is implemented from the bottom up. This method is encouraged to participate in the parts, but slow and sometimes aggregated results inconsistent with the expectations of business leaders
MBO for the benefit of the enterprise is very clear as possible to encourage the initiative of subordinates in the process of planning goals, establishing uniform performance standards, measure performance across … business. MBO at the same time enabling senior managers to more easily control the enterprise.
In the 90s of the twentieth century, Peter Drucker pointed out broad sense to approach this administration “MBO is just another tool, not can not cure all disease management MBO only inefficient transport … if you know the specific targets. ” It also showed that major obstacles when applying MBO is to identify specific targets because many jobs are difficult to quantify and detail the outputs. Moreover, environmental changes can create gaps, holes in the MBO process – challenges the sustainability of the business.
2. About JSC Kosy
Company shares are trading company Kosy multidisciplinary. The main business of the Company are: mining and mineral processing, construction, real estate, education and training. The company has branches in many provinces such as Ha Noi, Lao Cai, Cao Bang … and are key partners of certain foreign corporations. The company’s mission is to reach a global corporation, interdisciplinary activities, the desire to satisfy shareholders and partners.
The company is “young” on the market but there is always Kosy efforts to become multi-enterprise business effectively. In the first phase start-up, based on the basis of core competencies Kosy select company main business is education and training sector. The company has investment and development into a profitable industry stable, long-term. After that, the company has expanded into the business of second and subsequent construction of the third sector and exploitation of mineral processing, the fourth branch of real estate business. Currently Kosy business on four areas very well, building a strong foundation for future sustainable development.
The challenge for companies in the coming period is to maintain growth and efficient operations across all areas of business operations of the Company. In this context, senior management the company has decided to apply management methods targeted at Kosy Company.
3. Oriented application of MBO in Kosy Corporation
Currently, JSC Kosy MBO are oriented in the enterprise application. To apply good at JSC Kosy MBO, management of the company to thoroughly understand the following principles:
• The objectives and targets of the enterprise must be determined according to rank, according to a consistent and strategic level over time.
Identify the specific objectives for each employee
· Process decisions involve the employees
Identify the time made clear
· Evaluating performance and providing feedback
On that basis, the system objectives of the Company shall ensure the consistency, order and consensus. Each goal to ensure the principle Smarter
· Specific: Specifically
· Measureable: Measurable
· Achievable: Feasibility
· Realistic: The reality
· Time: Duration
· Engagement: Links
Relevant ·: As appropriate
Accordingly, the Company’s MBO cycle is a closed loop as follows. It is interesting to note that to ensure the success of the MBO, then there will be close coordination between management and employees. Environment because there is no “ideal” is the goal and system management by objectives system is rigid and non-connected.
Figure 1: Cycle Management by objectives:
Above is the basic orientation but implementing MBO in Kosy much work to do. The successful implementation of MBO in the enterprise not only depend on the commitment and efforts of senior leaders, but also influenced the participation of all levels. Understand that, Kosy seeks to build corporate culture and investment in staff. Kosy companies are on the rise and always strives for the development of comprehensive and professional. The application of MBO in the enterprise is part of that effort.
Peter F. Drucker, “Drucker Essence of Management”, Published by Children 2008
Peter F. Drucker “The Practice of Management”, HarperBusiness 1986
(The article was published in the Journal of Development Economics – School NEU)