Question

Management by Objectives

30 Jul 2026
Answer :
Word Count : 711
Management by Objectives (MBO) is a systematic and participative approach to management in which managers and employees jointly establish specific objectives, develop action plans to achieve them, monitor progress, and evaluate performance based on the attainment of predetermined goals. The concept was introduced by Peter F. Drucker in his book *The Practice of Management* (1954). In the context of Organisational Development (OD), MBO is regarded as an important intervention that enhances organizational effectiveness by aligning individual objectives with organizational goals, improving communication, and encouraging employee participation. The central idea of MBO is that every employee should clearly understand what is expected of them and how their work contributes to the achievement of organizational objectives. Instead of relying on traditional command-and-control methods, MBO promotes cooperation, shared responsibility, and mutual commitment between managers and employees. This participative process increases motivation and accountability while strengthening organizational performance. The MBO process generally begins with the establishment of organizational goals by top management. These goals are based on the organization's mission, vision, and strategic priorities. Once the organizational objectives are defined, they ___ __________ ___ ________ ____.
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