The Early Days Of Management By Objectives

The first thing that occurred I believe took place at Hewlett-Packard Company they were the first to use a program called management by objectives. In the early days of Hewlett-Packard their number one objective was to make a contribution to society in trying to obtain this objective they came to the realization that to make a contribution to society you first have to have a profitable operation. Due to this realization Hewlett-Packard’s number one objective became to make a profit with making a contribution to society falling into place after making a profit. The managers at Hewlett-Packard were asked to set up their own objectives for the division or group they were managing. An interesting thing took place it seems that the setting of the objective and achieving that objective was not as critical as a discipline of writing the objective and monitoring how successful the individual or group was in achieving that objective. The discipline of setting the objective and monitoring the success of the objective turned out to be the real benefit of the whole discipline. What occurred was that when the objective was set and monitor the person setting the objective became much more cognizant of all the activities that were going on in their groups or divisions this understanding raised the overall manufacturing capability and scientific development for the entire Corporation.