Management by Objectives (MBO )

Meaning and definition of management by objectives

Management by objectives (MBO) has become a widely used slogan. It is a basic mentality that a high-performance manager brings to the job of managing. The term management by objectives was coined by Peter Drucker in 1954. he propounded management by Objectives concept and emphasized it and then it developed as a management philosophy,. Some authors has used the term management by results interchangeable with management by objectives.

Management by objectives is an overall philosophy of management that concentrates on goals and end results. Management by objectives is based on the presumption that people perform better when they know what is expected of them and can relate their personal goals to organizational goals. It also assumes that people perform better when they know what is expected of them and can relate their personal goals to organizational goals. It also assumes that people are interested in the goal

setting process and in evaluating their performance against the target.

Some important definitions of MBO may be given as follows :

George S. Odiorne.

The system of management by objectives can be described as a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individual major areas of responsibility in terms of the results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.

Peter Drucker.

He says that management by objectives and self-control is a philosophy of management. Resting on a concept of human action. Human behavior, and human motivation. MBO applies to every manager at any level and to all business enterprises whether large or small. He says the management by objectives ensures performance by converting objective needs into personal goals.

Heinz Weihrich & Harold Knoontz.

MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed toward the effective and efficient achievement of organizational and individual objectives.