Management by objectives (MBO) is a systematic andorganized approach that allows management to focus onachievable goals and to attain the best possible resultsfrom available resources. It aims to increaseorganizational performance by aligning goals andsubordinate objectives throughout the organization.Ideally, employees get strong input to identify theirobjectives, time lines for completion, etc. MBO includesongoing tracking and feedback in the process to reachobjectives.• Management by Objectives (MBO) was first outlined byPeter Drucker in 1954 in his book The Practice ofManagement. In the 90s, Peter Drucker himselfdecreased the significance of this organizationmanagement method, when he said: "Its just anothertool. It is not the great cure for managementinefficiency... Management by Objectives works if youknow the objectives, 90% of the time you dont."

The MBO style is appropriate for knowledge-basedenterprises when your staff is competent. It is appropriate in situations where you wish to buildemployees management and self-leadership skills andtap their creativity, tacit knowledge and initiative.Management by Objectives (MBO) is also used by chiefexecutives of multinational corporations (MNCs) for theircountry managers abroad.