Management By Objectives

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Management by Objectives (MBO) was first suggested by Peter Drucker in 1954 and popularised through the efforts of George Odiorne, John Humble and others. MBO is a comprehensive management system based on measurable and participatively set objectives.

Odiorne defined MBO as:

“A process whereby the superior and the subordinate managers of an enterprise jointly identify its common goals, define each individual’s major areas of responsibility in terms of the results expected of him, and use these measures as guides for operating the unit and assessing the contributing of each of its members.”

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