Management by Objectives (MBO) is a process that defines organizational objectives so that management and employees agree on and understand them. It involves participative goal setting, choosing actions, and measuring employee performance against standards. MBO integrates corporate and individual objectives, provides a basis for measurement, and requires employees to manage their own performance through agreement rather than commands. The process clarifies the organization and encourages commitment, while potential downsides include time/cost issues, difficulties setting objectives, and inflexibility.
6. Definition: “ Management By Objectives’ is a comprehensive {wide} managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organizational and individual objectives.”
