ABSTRACT

The studyfocused on the impact ofmanagement by objectives on organizationalperformance. (A study ofFirst Bank Pic, Abia State). The main objective ofthe study is to determine the Impact of Management by Objectives on Organizational Performance The researcher identify thefollowing objectives, whereas other specific objectives sought to determine the structures and processes of management by objectives infirst bank, tofind out the level ofparticipation ofboth managers and employees in the setting of goals, to determine the challenges of MBO on performance and to ascertain the relationship between reviewing progress or organizational performance. A survey research design was adoptedfor the study The population ofthe study is 280 and the sample size is 165 using Taro Yamene'sformula at 5% error tolerance and 95% level ofsignificance. Collection ofprimary data was done using questionnaire. The research instrument was validated through content validity index and through the supervisors input. The questionnaire was structured using a Five-point likert scale. Out.of165 questionnaires distributed 155 was returned while 10 copies was not returned. The data were presented in a simple percentage table and analyzed using Chi-square, ANOVA and regression analysis. Based on thefindings and the result ofthe analysis, the researcher confirmed that the structures and the processes of MBO has no significant impact on organizational performance(X2'Cai=l5.973P.Value=.OOO), that setting arbitrary goals and failure to ensure networks of goals are not the challenges of MBO on the organizational performance(Xcal=22.655<26.30) and that there is a significant relationship between reviewing progress/appraisal on organizational performance(F=.813>P.Value=.j69) since it helps to detect and check error, recognizessuccess thereby leading to the promotion ofthe employees. The researcher proffered the following recommendation; thatfor the corporate goals to be realized, managers should consult their employees/subordinates in drawing up unit objectives, managers and employees should meet periodically in order to review progress towards the realization of organizational objectives and that managers should improve on their accountability for budget expenditure.