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According to Ashkanasy, Humphrey & Huy, the theories of management have enabled all the organisations around the world to significantly communicate, focus and evolve at the same time. Implementation of the Management theories in the organisations enables the leaders to significant aim their focus towards the main goal of the organisation. As a matter of fact, as soon as a management theory gets implemented, it tends to streamline the top priorities of that particular organization. Similar understanding could be gathered based on the viewpoint placed by Morschett, Schramm-Klein & Zentes, which enables the readers the understanding that the implementation of managerial theories helps in getting a better understanding of the organization. It gets important to highlight the fact that management should be considered universal in the modern industrial world. Therefore, it could also be stated that there is no substitute for good management.

Also, the implementation of these theories enables proper management of the modern organisation. They have a serious positive impact, such as increased productivity, motivating employees, and effective managerial decision-making (Luthans, Rosenkrantz & Hennessey). Based on this observation, the importance of implementing managerial theories could be identified. Therefore, this paper will significantly talk about two important managerial theories, which are Management by Objectives - Peter Drucker and Mintzberg's Managerial Roles. A thorough understanding of both theories will be presented in this paper. Connecting real-life examples with the theories will also help the readers to get a better understanding of the management theories that will be discussed in the paper.

Management by Objective (MBO) could be identified as a powerful strategic management tool that was developed by Peter Drucker in a practical manner. According to Kyriakopoulos, Management by Objectives (MBO) could easily be termed a performance management approach, and in relevance to this approach, a significant balance could be sought between the purposes of employees getting aligned with the objectives placed by the organisations. It is important to state that this strategic tool was primarily developed by Peter Drucker, who is a renowned American author and consultant in the field of Organizational Development and management. It could be realised that the implementation of this strategic tool is to determine joint objectives and to deliver feedback based on the results. Also, implementing stimulating and unattainable purposes tends to promote motivation and authorization of the workers at the same time (Gotteine).

In order to implement this tool so that the commitment could be increased, there is a certain number of conditions that need to be met, as stated by Peter Drucker. To begin with, objectives should be collaboratively determined with the employees. The relevant objectives need to be formulated in relevance to qualitative and quantitative aspects. Also, this set of challenges needs to be challenging and motivating at the same time. The basic principles of all these challenges should be development and growth and not punishments. Constant feedback needs to be enabled so that a record can be kept, and later, the performance can be analysed. Lastly, rewards should be allocated if the set of challenges and objectives are met significantly (Hoffmann-Burdzi?ska and Flak). Apart from this, it also needs to be stated that Management by Objectives (MBO) is also known as Management by Results (MBR).

Management By Objectives - Peter Drucker

To be more specific, this strategic tool could significantly be divided into five significant steps. By implementing these five relevant steps, Management by Objective could be put into practice. The very first step that could be identified is determining or revising the organisational objectives. As stated by Campbell, strategic organisational objectives could be identified as the initial point of management in relevance to the objectives placed by the organisation. These objectives are significantly derived from the vision and mission of the Corporation. Without the basics, further steps should not be taken. The next step that could be identified is translating the organisational objectives to the employees. As stated by Peter Drucker, in order to carry out the second step significantly, it gets important to classify the objectives in terms of SMART (Specific, Measurable, Acceptable, Realistic and Time-bound) goals (George et al.). Accordingly, the objectives should be communicated to the employees so that they can carry out relevant activities to fulfil the objectives.

The third step of this strategic tool is stimulating the participation of the employees in order to determine the objectives. To begin with, each and every employee have to significantly participate in the relevant process of defining personal objectives (Cardona and Rey). Such relevant personal objectives are, therefore, in connection with that of the objectives of the organisation. It could be realised that once the organisation's goal gets aligned with the goal of the employees, this will motivate the employees to perform excellently. To be more specific, employee engagement will significantly increase, keeping in mind the personal growth of the employees. The fourth step that could be identified is of monitoring the progress. Since the goals are SMART, therefore it could be realised that objectives are measurable. Since the objectives are measurable, it gets significantly important to monitor the progress of the employees.

According to Effendi and Usman, detection must be should be done on in a timely manner so that large problems can be prevented. Based on this claim, it could be realized that monitoring will help in keeping a tab on the performance and based on that, feedback could be shared to the employees so that they could improve significantly better their performance. Last but the most important step of the strategic tool is evaluation and reward achievement. As a matter of fact, the last step is crucial as it adds up to the concept of employee motivation. Based on the evaluation, the employees should be rewarded and recognised so that the employees will feel valued. As stated by Ghana, it could be identified that Management By Objectives has significantly been designed to advance relevant performance at all levels that are relevant to that of the organisation. This process should be based on relevant feedback, and based on that comprehensive feedback evaluation should be presented. Therefore, it could be significantly realised that Management by Objectives is all about the whys, when and how the specific objectives could be achieved.

Mintzberg's Managerial Roles

Management by Objectives as a strategic tool gets implemented thoroughly for most of companies around the world. Right after Drucker introduced this model, this was implemented by a lot of companies for their success. Also, this has enabled those companies to significantly improve their productiveness and also, at the same time, enhance their sales (Drahotský). One such example could be Hewlett-Packard which has been successful in implementing this particular tool introduced by Peter Drucker. As a matter of fact, the computer company Hewlett-Packard has implemented the model in order to formulate a system in which it could be seen that the objectives have significantly conversed in all the relevant managerial levels. Therefore, it could be identified that this helps in creating a system of integrated objectives, with the relevant implementation of the Management by Objective model. Based on further research, it has also been identified that Hewlett-Packard uses written plans for this implementation. This will ensure the objectives and the relevant steps taken in order to achieve the organisational goals.

Also, these goals have properly conversed to the employees of the Hewlett-Packard so that they stay informed about all the relevant strategies taken by the organisation. It has been specifically claimed by Bill Packard that "No operating policy has contributed more to Hewlett-Packard's success…MBO…is the antithesis of management by control." (Khalifa, Alsaid and George) Adding to that, he has further elaborated that the implementation of this strategy, it helps in creating a relevant environment in which the workers are not only employed for the profit of the company but also at the same time working for personal growth. As the employees are focused on the development of their personal growth, therefore it also increases the chance of the organisation's success rate.

According to Mintzberg's theory, it has been stated that managers tend to fulfil various roles each and every day in an organization. To be more specific, a manager has multiple roles to play, such as enabling relevant request for a original computer system, representing the department at a board meeting, negotiating new contracts and also at the same time resolving the conflict (Kumar).

In the year 1990, a book by the name of "Mintzberg on Management: Inside our Strange World of Organisations" was published by Mintzberg, and in this book, he talked about all the relevant Ten Management Roles thoroughly.

The ten management roles that have been proposed by Mintzberg are as follows:

  • Disturbance Handler.
  • Resource Allocator.

Now, all these ten managerial roles can be classified into three groups. It could primarily be divided into the managerial role that tends to involve providing ideas and information. Also, the next classification of managerial roles depends on the processing of such relevant information. Lastly, the last roles include utilising that information and implementing them into new innovations. The three specific division further needs to be discussed for a better understanding of the readers.

In the beginning, the managerial roles which tend to encompass providing information and ideas are:

  • Figurehead – Being a manager, the individual has to be social and ceremonial and should be able to carry out legal responsibilities. Adding to that, the individual should be looked at as the foundation of inspiration for the employees working under him or her. Individuals tend to look at this particular manager as an individual who has authority and should be considered as a figurehead.
  • Leader – This role enables the manager to deliver or exhibit leadership for the team of employees. At times it could be leading the department, or it could also mean leading the entire organisation (Snyder and Glueck). Therefore, based on this role, it could be identified that the managers are responsible for managing the performance of every individual present in the group.
  • Liaison – Based on this role of the manager, it could be identified that the manager should significantly communicate with the external as well as the internal contacts. A manager should be fluent in networking, and the manager should be able to network in an active manner for the organisation.

Next, the managerial roles that will be discussed tend to involve the processing of information.

  • Monitor – In relevance to this particular role, the managers' periodic Lee seek out information that is related to the Corporation and the industry they are working in. Collection of the information required to understand the fluctuations that are occurring in the industrial environment. In relevance to that of the well-being of the team and their productivity, monitoring also needs to be done by the manager (Mintzberg and Laasch).
  • Disseminator – Based on this particular role, the manager should be able to properly communicate relevant and important information to their co-workers and also, at the same time to their team effectively.
  • Spokesperson – It has already been identified that the manager of the organisation speaks and is present on behalf of his or her organisation. Therefore, this role helps in understanding the responsibility of a manager in transmitting information about the organisation and, at the same time, the core values and the goals to the stakeholders outside the organisation (Ollila and Yström).

Next, these are the managerial roles that specifically involves the implementation of the information that has been acquired in order to innovate product or services.

  • Entrepreneur – Being the manager of the organisation, he or she is in complete charge of the changes that are taking place in the organisation. Changes could be related to solving issues, implementing new ideas after they are generated and innovating new services for the customers (Wu, Ma, and Wang).
  • Disturbance Handler – There could be instances where an organisation could hit an unexpected roadblock. This particular rule tells the manager that he or she should take charge in order to mediate the dispute and understand the relevant solutions to it.
  • Resource Allocator – Being the manager of an organisation, it gets important to allocate the resources for the best purposes. Allocation of resources includes allocating funding along with assigning organisational resources to the different staff.
  • Negotiator – Negotiation is a very important skill that a manager should master. As a manager, it is important to carry out significant negotiations with the team, inside stakeholders, outside stakeholders or any other relevant parties if any kind of issue occurs.

In relevance to the real-life example, it could be seen that Elon Musk, CEO of Tesla, has been able to fulfil all the managerial roles that have been identified by Mintzberg. In connection with the interpersonal roles, it could be seen that the managers need to communicate with other people inside and outside the organisation, and Elon Musk has been able to fulfil this role. To begin with, Elon has planned to increase their production from 2000 to 6000 vehicles per week and based on this, he sends extraordinary emails to his employees in order to keep them motivated. In those emails, he thanks and commence his employee when they have achieved certain goals of the organisation. With the implementation of this process, Elon Musk motivated the employees and succeeded in making them feel that they were part of the larger team and that they were needed (Umoh).

In connection with the information on roles, it could be identified that Elon musk tens to imply a strategy that he thinks is beneficial for the company. He has encouraged his employees to communicate directly and ditch the traditional way of communication with managers. He believes that talking directly in relevance to solving a problem that would benefit the entire company will prove to be extremely beneficial (Kane). Last but not least, in relevance to the decisional roles, it could be identified that Elon musk likes to take decisions office right from the very beginning of his venture. He has always been very upfront about all the strategies and implementations that have succeeded in or field over the years. As a manager, he commands accountability of his employees as well, which helps him to feet in the decisional roles (economictimes).


On a concluding note, based on the discussion that has been presented in this paper, the importance of management theories could be realized. Two specific theories have been precisely discussed in this paper, and both theories are extremely important in relevance to the management of the organizations. It could be concluded that the first theory that has been discussed is Peter Drucker's Management by Objective. It has helped the readers and the future managers to understand that aligning the goals of the employees in connection with that of the organization has the ability to render positive outcomes for any given organization. The next management theory that has been significantly discussed in this paper is Mintzberg's Managerial Roles. This model has helped to conclude that a manager has various roles to play in an organization. An organization could only be considered as successful if they have significantly been able to play all the roles that have been identified in the Mintzberg's Managerial Roles. All the discussion that has been presented in this paper are based on the claim taken from different sources of information. Further, these sources are already identified as a credible sources of information. Therefore, this paper could be used as a reliable source of information relevant to further studies related to management theories. 

Ashkanasy, Neal M., Ronald H. Humphrey, and Quy Nguyen Huy. "Integrating emotions and affect in theories of management." Academy of Management Review 42.2 (2017): 175-189.

Campbell, Donald J. "Management by objectives." Wiley Encyclopedia of Management (2015): 1-1.

Cardona, Pablo, and Carlos Rey. "The Limits of Management by Objectives." Management by Missions. Palgrave Macmillan, Cham, 2022. 35-48.

Drahotský, Petra Vrbová–Václav Cempírek–Ivo. "Up-To-Dateness Of Management By Objectives."

economictimes. "Elon Musk Has Tips For Managers To Increase Productivity At Work - ?Avoid Large Meetings". The Economic Times, 2022,

Effendi, Rustam, and Andi Usri Usman. "Design Of Personnel Performance System Using Management By Objectives (Mbo) Method." Journal of Innovation And Future Technology (IFTECH) 1.2 (2019): 131-144.

George, Shaju, et al. "The Impact of Management by Objectives on Employee Behaviour and Performance." 2021 International Conference on Decision Aid Sciences and Application (DASA). IEEE, 2021.

Ghana, Vodafone. "Impact of Management by Objectives [MBO] on the Employee Productivity in."

Gotteiner, Sharon. "The OPTIMAL MBO: A model for effective management-by-objectives implementation." II Research Workshop Missions, leadership and sustainability. 2016.

Hoffmann-Burdzi?ska, Kinga, and Olaf Flak. "Management By Objectives As A Method Of Measuring Teams'effectiveness." Journal of positive management 6.3 (2015): 67-82.

KANE, LIBBY. "In Internal Tesla Memo, Elon Musk Says The Way Most Companies Communicate Is 'Incredibly Dumb'". Business Insider, 2022,

Khalifa, Noof Yahya, Hayam Mohie Alsaid, and Shaju George. "A Comparative Analysis of Strategies and Business Models of Dell Inc. and Hewlett Packard (HP)."

Kumar, Pardeep. "An analytical study on mintzberg's framework: Managerial roles." International Journal of Research in Management & Business Studies 2.3 (2015): 12-19.

Kyriakopoulos, Grigorios. "Half a century of management by objectives (MBO): A review." African Journal of Business Management 6.5 (2012): 1772-1786.

Luthans, Fred, Stuart A. Rosenkrantz, and Harry W. Hennessey. "What do successful managers really do? An observation study of managerial activities." Managerial Work. Routledge, 2019. 165-180.

Mintzberg, Henry, and Oliver Laasch. "Mintzberg on (ir) responsible management." Research Handbook of Responsible Management. Edward Elgar Publishing, 2020.

Morschett, Dirk, Hanna Schramm-Klein, and Joachim Zentes. Strategic international management. Springer, 2015.

Ollila, Susanne, and Anna Yström. "An investigation into the roles of open innovation collaboration managers." R&d Management 47.2 (2017): 236-252.

Snyder, Neil, and William F. Glueck. "How managers plan—the analysis of managers' activities." Managerial Work. Routledge, 2019. 227-233.

Umoh, Ruth. "The Tactics Self-Made Billionaire Elon Musk Uses To Motivate His Teams". Cnbc, 2022,

Wu, Yuanyuan, Zhenzhong Ma, and Milo Shaoqing Wang. "Developing new capability: Middle managers' role in corporate entrepreneurship." European Business Review (2018).

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