Archive | January 26, 2016

Management by Objectives (MBO)

Management by Objectives (MBO) is a process of agreeing upon objectives within an organisation so that management and employees agree to the objectives and understand what they are. Management by Objectives (MBO) is a systematic and organised approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organisational performance by aligning goals and subordinate objectives throughout the organisation. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes on going tracking and feedback in the process to reach objectives.


MBO was first outlined by Peter Drucker in 1954 in his book ‘The Practice of Management’. In the 90s, Peter Drucker himself decreased the significance of this organisation management method, when he said: “It’s just another tool. It is not the great cure for management inefficiency … Management By Objectives works if you know the objectives. 90% of the time you don’t.”  According to Drucker, managers should “avoid the activity trap”, getting so involved in their to day activities that they forget their main purpose or objective. Instead of just a few top managers, all managers should: Participate in the strategic planning process, in order to improve the implement ability of the plan, and Implement a range of performance systems, designed to help the organisation stay on the right track.

Managerial Focus

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News for January 26, 2016

Important News from The Hindu:

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