Effect of management by objectives on organizational and financial performance of banks

Abstract

The study investigated the effect of management by objectives on organizational and financial performance of banks. Two research objectives and research questions; and two research hypotheses were used for the study

Methodology/approach – The study adopted a descriptive survey research design. The population of this study encompassed the employees of a commercial bank in Anambra State. The population of the study consists of 105 employees in the branches of the bank in Awka South Local Government Area in Anambra State, Nigeria, which is made up of top, middle and junior management level staff. Data generated from the survey were analyzed using descriptive statistics such as mean, frequency percentages and standard deviation (SD) which provided answers to the research questions..

Findings – Findings showed strong agreement that MBO enhances goal setting, accountability, and decision-making, with mean scores (3.91–3.95) and a grand mean of 3.61. It also improves financial performance (means 3.44–3.96; grand mean 3.77). A correlation coefficient (r = 0.963, p = 0.10156 > 0.05) indicated a strong but insignificant relationship. It therefore recommended that top management should sponsor their staff conferences in the area of banking management and planning within and outside the state where they will acquire more knowledge on the application of MBO to their managerial tasks