The purpose of this study is to understand the effects of MBO (Management by Objectives) on the organizational effectiveness. A survey was conducted concerning appropriateness of the objectives, objective management processes, and organizational fairn...
The purpose of this study is to understand the effects of MBO (Management by Objectives) on the organizational effectiveness. A survey was conducted concerning appropriateness of the objectives, objective management processes, and organizational fairness. Eleven organizations (Enterprise and Government) adopting MBO were chosen and 375 questionnaires were distributed between November 20th, 2006 and December 1st. 2006. 321 (85.60%) were collected and among them 309 copies (82.40%) were used. An analysis was carried out using SPSS win 12.0. First, we found that appropriateness of objectives positively affects job commitment. Second, in the objective management process, procedural fairness has more effects on job commitment than distribution fairness. Third, MBO is affected by the interactions between supervisors and employees in the case of the assessment and feedback. This study reveals again that in the operation of MBO, procedural fairness and interactions between supervisors and employees are critical factors leading to the success of MBO.