Management by Objectives (MBO) is a strategic management approach that aligns organizational goals with individual employee objectives to drive performance and accountability. Developed by Peter Drucker in the 1950s, MBO involves a collaborative process of setting specific, measurable goals and regularly evaluating progress.
This method aims to improve organizational effectiveness by ensuring all employees understand how their work contributes to broader company objectives. While MBO offers benefits like enhanced communication and clear performance metrics, it also faces challenges such as potential short-term focus and implementation difficulties. Understanding the key principles, benefits, and limitations of MBO is crucial for organizations considering its adoption as a management tool.
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Source: Management by Objectives (MBO)
