Modern Management: concepts and skills, 14/e

Management by Objectives (MBO)

Some managers regard organizational objectives as such an important and fundamental part of management that they use a management approach based exclusively on objectives. This approach, called management by objectives (MBO), was popularized mainly through the writings of Peter Drucker. Although mostly discussed in the context of profit-oriented companies, MBO is also a valuable management tool for nonprofit organizations such as libraries and community clubs. The MBO strategy has three basic parts:³⁷

1. All individuals within an organization are assigned a specific set of objectives that they try to reach during a normal operating period. These objectives are mutually set and agreed upon by individuals and their ...