Management by Objectives (MBO)

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  • An appraisal tool that was popularized by Peter Drucker in 1954 in his book The Practice of Management. It generally refers to the systematic and organized management technique of setting attainable goals and objectives. Initially, MBO was a human resource management tool for improving communication about expected work between supervisors and employees and encouraging workers to focus on outcomes. Rather than the supervisor assigning objectives and tasks to the employee in a top-down manner, MBO requires negotiation between the supervisor and the employee and encourages discussion of the nature of the task, the quality of the work, and the resources needed to accomplish the tasks. When MBO is fully operationalized in an organization, each employee's objectives are related to unit goals and organization goals in ...

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