Management by Objectives

Peter Drucker created Management by Objectives (MBO). It is a technique that emphasizes collaborative objective setting by managers and their subordinates.

The idea is that the manager and subordinate determine objectives for the subordinate. The subordinate proposes objectives to be reached over some agreed period. The manager then gives his/her approval or recommends modifications and/or adds additional objectives.

MBO results in employees that are more committed to the achievement of the objectives than they might be if they were not involved in setting the objectives.

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