Management by Objectives (MBO)

Management by Objectives (MBO)

1. Objectives are the endpoints toward which activities are aimed.
2. Management by Objectives (MBO) is a philosophy of management that emphasizes:
3. The development of objectives mutually by managers and their subordinates, and
4. The use of these objectives as the primary basis of motivation, evaluation, and control efforts.

Management by Objectives

(Aligned to the organization’s vision and mission)

Principle Behind MBO

The principle behind Management by Objectives (MBO) is:

1. To ensure that everybody within the organization has a clear understanding of the aims or objectives of the organization.
2. To ensure that individuals are aware of their own roles and responsibilities in achieving those aims.
3. MBO is the process of defining top company goals and using them to determine employees’ objectives.

Definition of MBO

MBO is:

“A process whereby superior and subordinate managers of an organization jointly define its common goals, define each individual’s major areas of responsibility in terms of results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.”

— George Odiorne

Goals and Objectives

The terms Goals and Objectives indicate an end result to be sought and accomplished.

Is there any difference between these two terms?

Goal and Objectives

1. Goal:
2. A desired state (of affairs) which an organization wants to realize.
3. Objectives:
4. Objectives are established to guide the efforts of the organization and each of its components to reach the goal.