Mbo: Explore Management by Objectives

Explore Management by Objectives (MBO) with 5 detailed steps, key advantages, and common pitfalls managers face in achieving organizational alignment and employee engagement. Management by objectives (MBO) is a strategic approach to increasing company performance by aligning company and team objectives. In this article, we’ll explain how the MBO process works and some pros and cons of using the MBO model. MBO is defined as a management practise which aims to increase organizational performance by clearly defining the goals and subordinate objectives of the organization that are agreed to both management and employees. Management by objectives (MBO), also known as management by planning (MBP), is a management style involving the defining of specific objectives within an organization and subsequent deciding how to achieve each objective in sequence. It was first popularized by Peter Drucker in his 1954 book The Practice of Management.