Concept in Definition ABC

The acronym APO stands for administration for objectives, a strategy business in which workers and managers of a company work to meet previously established goals.

Origins and evolution

This business modality emerged in the United States in the 1950s in order to promote a new model of productivity that responded to the interference of the government on business activity. On the other hand, management by objectives began to develop in opposition to the previous model: management by pressure.

The system of pressure exerted on directors and managers was based on the control and surveillance of their actions, but this approach proved to be ineffective. With the passage of time, APO was also considered as a method of evaluation of the different job responsibilities.

Management by objectives fundamentals

To achieve business goals, planning is absolutely necessary. Through a correct planning it is possible to exercise control of the administrative processes used. All planning involves a series of steps: defining the business opportunity,

establishment of the objectives and possible alternatives.

The APO model is associated with systematization business and the idea of ​​order. In this sense, with clearly defined objectives it is more feasible to organize an activity in an orderly manner.

This system is based on a utilitarian and pragmatic vision of the company. In other words, everything that does not serve to achieve certain objectives is something expendable.

From the point of view of motivation, the APO is considered a valid model, since it allows workers and managers to have an interest in achieving their goals.

According to the experts in this model, for its application to be effective, certain requirements should be met:

1) that the management team and subordinates agree on the type of objectives set,

2) that short-term goals are set and

3) a permanent evaluation of the objectives through a verification system of the same.

A system that is not shared in all business areas

For some experts and analysts, this administration and management model has some weaknesses. In the first place, the planning can be imperfect and, consequently, the objectives set are no longer valid. On the other hand, setting objectives makes possible alternative initiatives difficult.

Likewise, it must be borne in mind that certain objectives are not easily quantifiable.

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