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Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his book ‘The Principle of Management’. It is a systematic and organized approach that allows management to focus on achievable goals and to attain best possible results from available resources.
Characteristics of MBO:
- MBO emphasizes participation in setting goals that are tangible, verifiable and measurable
- Focuses on what should be accomplished (goals) rather than how it should be accomplished (methods).
- By concentrating on key result areas translates the abstract philosophy of management in to concrete phraseology.
- Allows management to attain maximum results from available resources by focusing on achievable goals.
Process of MBO:
Limitation of MBO:
- Performance pressure
- Time consuming
- Increase paper work
- Goal setting problems
- Organisational problems