MANAGEMENT BY OBJECTIVE
Management By Objective
MBO stands for Management by Objective. It is a strategic approach to attaining the organizations goals. The primary objective of MBO is to improve the companys performance by clearly identifying its goals and strategy. Management and the workers who work on them agree on both the goals and the strategies.
Management guru Peter Drucker used the term in his 1954 book, The Practice of Management. Having a say in goal planning and action plans, according to the concept, increases employee participation and commitment while also unifying objectives across the company. It was largely established to compare actual performance with clearly specified targets prior to taking action.