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Business people say: “What isn’t measured doesn’t count.” What does Peter Drucker say about setting objectives?

  1. Business people say: “What isn’t measured doesn’t count.” What does Peter Drucker say about setting objectives?

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Peter Drucker formulated the basic principle of "Management by Objectives"

The essence of this principle is that management should form joint objectives with employees in such a way that employee objectives coincide with management objectives. These employee objectives should be challenging but achievable so that thet motivate the employees to work harder towards realizing the objectives and thus benefiting firm as well as own career. However, the following are some conditions to be met for this to work

  • Employees must participate in defining objectives
  • Both quantitative and qualitative objectives are defined
  • Objectives must challenge, motivate and are realistic
  • Rewards and recognition mechanism is present for the realization of objectives
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