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The Impact of Management by Objectives (MBO) on Organizational Outcome in a Digital World: A Case Study in the Aviation Industry

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Digital Economy. Emerging Technologies and Business Innovation (ICDEc 2019)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 358))

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Abstract

Adopting new management techniques has allowed organizations to cope with changes and deliver better results. One of those techniques is Management by Objectives (hereinafter mentioned as MBO). MBO is a simple need-to-achieve principle that allows managers and subordinates to jointly identify organizational goals. This paper examines the impact of applying MBO on organizational outcome in terms of productivity and efficiency in the aviation industry. A survey was distributed to a population of 200 targeted participants. Out of 130 respondents, a sample of 106 participants from the aviation industry was selected based on purposive sampling. Additionally, three field interviews were conducted with senior officers in the aviation sector. Survey results were analyzed using Microsoft Excel Statistical Package, while field interviews were analyzed through coding. The findings indicated that applying MBO in the aviation industry delivered better results in terms of productivity and efficiency, especially when supported by investing in technology.

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Correspondence to Farid Abdallah .

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Appendices

Appendix A

Survey

Section 1: general information, please tick the checkbox when applicable

figure a

Section 2: Effect of MBO on Organizational Outcome*

Guidance: please express your opinion by stating whether applying MBO has helped in increasing overall output of the organization

Key: 5 = Strongly Agree (SA), 4 = Agree (A), 3 = Neutral (N), 2 = Disagree (D), and 1 = Strongly Disagree (SD).

  1. 3.

    Is Management by Objectives (MBO) applied at your organization: Yes ☐ No ☐ (if no please proceed to question number three)

  2. 4.

    What is the most important factor that needs to be considered under MBO to yield better productivity: (rank 5 best – 1 least)

    figure b

Appendix B

Interview Questionnaire

  1. 1.

    Management by Objectives (MBO) is a management technique that allows organizations to set their objectives by molding employees’ goals and objectives. What do you think about this approach?

  2. 2.

    Do you think MBO is an effective tool to increase organizational output? What do you think are the determinants of MBO?

  3. 3.

    How did you apply MBO at your organization? And did you witness better output?

  4. 4.

    What implications was associated with MBO application? Is it behavioral? Lack of knowledge? Role stress and work overload? Please specify.

  5. 5.

    Do you think MBO will continue to spread in the presence of more flat organizational structures?

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Abdallah, F., Elhoss, W. (2019). The Impact of Management by Objectives (MBO) on Organizational Outcome in a Digital World: A Case Study in the Aviation Industry. In: Jallouli, R., Bach Tobji, M., Bélisle, D., Mellouli, S., Abdallah, F., Osman, I. (eds) Digital Economy. Emerging Technologies and Business Innovation. ICDEc 2019. Lecture Notes in Business Information Processing, vol 358. Springer, Cham. https://doi.org/10.1007/978-3-030-30874-2_2

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  • DOI: https://doi.org/10.1007/978-3-030-30874-2_2

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-30873-5

  • Online ISBN: 978-3-030-30874-2

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