Management by Objectives (MBO) is a philosophy and approach that emphasizes setting specific objectives or goals for employees and aligning their efforts toward achieving them. It was popularized by Peter Drucker in his book “The Practice of Management” in 1954.
MBO involves a collaborative process where managers and employees work together to define objectives that are specific, measurable, achievable, relevant, and time-bound (SMART). These objectives are typically set at various organizational levels, from top-level strategic goals to individual employee goals.
The process of Management by Objectives typically involves the following steps:
Here are some of the advantages of MBO:
Here are some of the disadvantages of MBO: