Research On The Factors Of Organizational Situation That Influence Putting MBO Theory Into Practice

Drucker’s theory of Management by objectives (MBO) is a successful managementtheory. By setting a goal, it inspires people’s motivation, guides people’s behavior andmeet people’s needs. It not only improves the overall efficiency of enterprises, but alsostimulates initiative and creativity of staff’.But because many enterprises do not have enough understanding about necessaryconditions for the MBO implementation, they blindly carry out MBO, turningemployees into machines. This has brought many problems in the enterprisemanagement. Since the MBO theory was introduced into China, its relevant researchhas never stopped; but most scholars only focus on specific implementation details, andonly a few scholars explore the influence of target implementation theory from theperspective of corporate culture and incentive mechanism. The MBO theory isimplemented in the big environment of enterprise, so it must be affected by theenterprise environment. This paper will explore the MBO theory from the perspective oforganizational situation.First of all, this paper summarizes the process of implementing MBO theory,including cognitive theory, target setting, target recognition and target implementation.The author defines organizational situation and indentifies three factor: organizationalstructure, corporate culture and organizational incentives, and through the interviewwith business managers, department managers and excellent staff, the author confirmsthe factor of organizational situation that are researched in this paper. Based on this, theauthor makes theoretical analysis, and then proposes the hypothesis and puts forwardthe conceptual model.Secondly, through empirical research methods, the author further explores andverifies the influence of various factor in organizational situation on MBO theory andrevises the conceptual model of this paper. The conclusions are as follows:(1)Organization standardization has a positive influence on the implementation of MBO.(2) A flexible corporate culture has a significant positive influence on MBO theory.(3) The incentive mechanism has a positive influence on the target cognition, targetrecognition and target implementation. Leaders’ support has a positive effect on thetarget cognition, target setting and target implementation.This paper not only proposes a new perspective for the study of MBO, but alsogive advice and suggestions for MBO implementation from the perspective oforganizational situation, and at the same time provides some theoretical support whenother theories are implemented in enterprises.