Abstract

Socialist market economy is being built in our country. It is very important to heighten the standard of management. In order to enrich the theory and experience of management in market economy, it is a better choice to learn and understand Drucker’ｓ theory of management by objective (MBO).

Drucker is a famous American managerialist in present age. He is regarded as the founder of the theory of management by objective. Drucker posed the conception of management by objective in “The Practice Of Management”, and perfected it constantly. The creation of Drucker’s theory of management by objective is a result of modern management theory’s development and modern production. It is also the result of the development of productive forces and production relations’ development in American.

Drucker’s theory of management by objective formed on the basis of the former theory. It mainly absorbed the content of scientific management theory and behavior science theory.

(1) Taylor’s scientific management theory. Taylor advocated the division of the plan and the performance. It makes a base for the settlement of plan and performance of management by objective. Taylor put forward that good objective of management should be set up and farm-out by objective. There are the same contents as management by objective. Taylor carried out exception principle in management of organ. In course of management by objective organ’s numbers execute self-management and self-control too. Superiors only control important problems according to exception principle. (2) Specialization theory. It provides the conditions for the drafting of standard and objective. Theory of MBO is based on the specialization theory. It demands that the total objective of the organ should be divided into the individual objective. And it forms a system of objectives to realize the high efficiency of management. (3) Y-theory. McGregor deemed that it was a suitable hypothesis on human’s motives. Y-theory regards human as “social human”. It considers that the influence of positive factor of human is social factor and mental factor besides material conditions. Drucker’s theory of management by objective request to treat member according to Y-theory and carry out self-management and self-control so as to give full play