Introduction to Management

Objectives are the important ends towards which organizational and individual activities are directed. Clear and verifiable objectives facilitate the effective and efficient management of organizations. Management by Objectives (MBO) is an effective planning tool that helps supervisors set objectives.

MBO has come a long way since it was first suggested by Peter Drucker as a way of promoting managerial self-control. It has been used to appraise performance, to motivate individuals, and recently, for strategic planning.

MBO aims at achieving organizational objectives and enhancing employee commitment and participation. MBO is a cyclical process. It involves developing overall organizational goals, clarifying organizational roles, establishing specific goals for various departments and individuals, formulating action plans for various departments and individuals, implementing and maintaining self-control, carrying out periodic reviews, and conducting performance appraisal of employees.