Editing Management by objectives (section)

{{Short description|Defining and tackling organization goals}}
'''Management by objectives''' ('''MBO'''), also known as '''management by planning''' ('''MBP'''), was first popularized by [[Peter Drucker]] in his 1954 book ''The Practice of Management''.<ref name=Practice>Drucker, P., ''The Practice of Management'', Harper, New York, 1954; Heinemann, London, 1955; revised edn, Butterworth-Heinemann, 2007</ref> Management by objectives is the process of defining specific objectives within an organization that [[management]] can convey to organization members, then deciding how to achieve each objective in sequence. This process allows managers to take work that needs to be done one step at a time to allow for a calm, yet productive work environment. In this system of management, individual goals are synchronized with the goals of the organization.

An important part of MBO is the measurement and comparison of an [[employee]]'s actual [[Performance management|performance]] with the standards set. Ideally, when employees themselves have been involved with the [[goal-setting]] and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.<ref>{{Cite web |url=http://home.snu.edu/~jsmith/library/body/v20.pdf |title=MANAGEMENT BY OBJECTIVES  |last=Thomson |first=Thomas M. }}</ref>

According to [[George S. Odiorne]]{{citation needed|date=March 2017}}, the system of management by objectives can be described as a process whereby the superior and subordinate jointly identify common [[goal]]s, define each individual's major areas of responsibility in terms of the results expected of him or her, and use these measures as guides for operating the unit and assessing the contribution of each of its members. MBO refers to the process of setting goals for the employees so that they know what they are supposed to do at the workplace. Management by Objectives defines roles and responsibilities for the employees and help them chalk out their future course of action in the organization.