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 action. Management by objectives can be described as a managerial
method where by the superior and the subordinate managers in an organization
identify 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 objective 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 refers to a
structured management technique of setting goals for any organizational unit.

George S. Odiorne
(1981:1) in his book management by objectives defined this concept as “a system
of management whereby the superior and subordinate jointly identify objectives,
define individual major areas of responsibility in terms of results expected,
and use these objectives and expected results as guides for operating the unit
and assessing the contribution of each of its member. Besides, Odiorne points
out that management by objectives is a “system of management” an overall frame
work used to guide the organizational unit and outline its direction. He went
further to point out that “the superior and subordinate jointly identify
objectives”. In other words, it is a participative management procedure that
requires commitment and co-operation. The definition deals with identifying the
“results” that are expected. Thus management by objectives concentrates on the
output of the organisation evaluating people by assessing their contribution to
this output.

Management by
objectives is a strategy where in the management sets specific goals for the
employees to accomplish within a fixed time period. Management by objective is
a dynamic system which seeks to integrate the company a need to clarify and
achieve its profit and growth goals with the managers need to contribute and
develop himself. It is a demanding and rewarding style of managing a business.

  Management by objectives can work in any size
of organization if the procedures are understood and managers are patient in
letting the system set in first. Management by objective is an effective
planning, control and development system.

Management by
objective was defined by Koontz and O’Donnell (1968:485) as a technique or
system or method of management where by the superior and subordinate managers
of an organization agreed on its broad goals, translate these goals into a
chain of specific short term goals, defined each individuals major areas of
responsibility in terms of result expected, continually reviewed the
accomplishment as the sole basis of assessing and rewarding them.

Management by
objectives gives the employee the opportunity to participate in decision
making, the limits within these limits. It assumes that the employee has been
properly selected and trained, and is informed that the employee will be
responsible for achieving the desired results in the organization.

Organizations are
ubiquitous. According to Mullins (2005:256), organizations are designed by
people to overcome individual limitations and achieve individually. Hence,
organization become a means of survival for the people and exerts an important
daily influence on the life of the people and the way they live. The major
decider for the survival of any organization is the presence of capable men and
women with the right technique to combine the organization resources (man,
machine, materials and money) to achieve organization goals.

It is appropriate
to note 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 objective is not only a managerial
strategy to achieve a well co-ordinated managerial goal, but it is also a
popular management technique that cut across or pervade all human activities
namely business areas, educational, government, health care and non profit
organisation.

Most of the
techniques, system, tools of management are hardly understood resulting in
losses and damages to the organisation. Besides, it is the wrong use of
technique and unwillingness of top management to utilize the right tool to
solve the management problems.

It is on these
trends that the researcher intends to find out the prospect and problems of
effective utilization of management by objectives by companies in Nigeria. In
order to investigate some of the above problems, one of the leading financial
institutions in the country, first Bank of Nigeria Plc Okpara Avenue Enugu has
been chosen.

1.1    STATEMENT OF THE
PROBLEM