Management by Objectives (MBO)

What is Management by Objectives (MBO) ?

‘Management by Objective’ refers to a management model that aims to increase the performance of a company by defining its goals and objectives after taking suggestions from the employees too.

This kind of input from the employees encourages them to remain engaged with the company and increase their loyalty towards the organization. It will also help in aligning their personal career objectives with the company objectives.

A major criticism with this management model is that it emphasizes the setting of objectives rather than working on the fulfillment of those objectives. Hence, additional time and resources are required to plan a strategy to achieve the aforementioned objectives.

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