Decision Making Analysis In Management By Objectives

The next advancement that took place was to train all non-scientific levels of management in some kind of decision making analysis, the engineers and scientists were already educated in a system that is called the scientific method. The scientific method is a process of checks and balances taking one from Hypothesis, to Theory, and then to Law to achieve the most thorough solution to a problem or a decision. The way that Hewlett-Packard was able to achieve this type of problem solving and decision-making analysis throughout all of the company’s manufacturing and production capability was to train all of its managers and production supervisors using a program based on the book called, The Rational Manager, published in 1965, written by Dr. Charles Kepner and Dr. Benjamin Tregoe . This was accomplished by Hewlett Packard sending all of these employees to a week-long training seminar on the Monterey Peninsula to a special training campus called Asilomar. The program lasted for one week and included approximately 20 managers at a time. This program consisted of a way to determine where problems were occurring and set up a method to analyze these problems and make good decisions in the correction of these problems.
One of the key questions asked at the start of the program is how do you define a problem. There was a great assortment of answers to this question. The programs answer to this question defined that a problem was a deviation from the norm. This answer is critical in the decision-making process, as one can see, because there can be good problems and bad problems. If the problem happens to be a good problem that creates more production, better manufacturing capability, or a higher quality product; one wants that problem to continue. You would not want to correct this problem. You would analyze this problem and make a decision that would make the problem part of a better process.
The next step is to make this decision using a structured process analyzing

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.