management by objectives

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Management by Objectives

A goal-oriented management tool in which managers and employees come together to agree upon a set of objectives to achieve for the company's short-, medium-, or long-term future. Management by objectives is a multi-step process in which previous goals are periodically evaluated and changed with employee input, then put into practice with occasional performance evaluation and rewards to high achievers. Goals are expected to be explicitly defined by the SMART Principle. That is, goals must be Specific, Measurable, Achievable, Relevant, and Time-Specific. Critics of management by objectives argue that the tool only works when goals are defined more specifically than is usually possible. Proponents argue that this arrangement helps employees avoid a workaday mentality in which activities are performed without any reference to greater objectives. The term 'management by objectives' was coined and first explained by Peter Drucker in his 1954 book, The Practice of Management.
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management by objectives (MBO)

an approach to MANAGEMENT, popularized by American management writer Peter Drucker (1909 -), which emphasizes the need for clear organizational objectives which can be incorporated in the actions of individual managers. In Drucker's view organizations have a multiplicity of objectives; these should be clarified and prioritized so that all managers understand what the most important goals of the organization are. Then individual managers should set objectives for themselves, in conjunction with their superiors, which will assist in meeting organizational goals. This approach was popular in the 1960s and 1970s but subsequently fell from favour because all too often objectives were imposed on managers rather than generated by them, and because the extent to which objectives were met was often used simply to evaluate managers rather than as a basis to improve performance. Genuine commitment was difficult to engender in these circumstances. This approach to management has made a comeback recently with the emphasis attached to objective-setting in the PERFORMANCE APPRAISAL process.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
When Management by Objective (MBO) was the search term for period 10, date 2008-2012, there were 8,200 document results.
Nowadays many organizations renew a management concept that was presented by Peter Drucker in his 1954 book 'The Practice of Management', it is called Management by Objectives (MBO) which is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization.
This means, inter alia, abolishment of the annual or merit rating and management by objective.
Physician executives can insist on accountability and on implementing what really works in their given context, rather than what the latest theory (reengineering, total quality management, theory Z, management by objective, T groups, demassing, excellence, etc.) states should work.
He catalogues several influential management ideas that have risen to and fallen from favor since the Second World War: cybernetics, job enrichment, quality circles, management by objective. Such figures as Peter Drucker, Herbert Simon, Chris Argyris, and Douglas McGregor receive sustained treatment.
For instance, there were plenty of gripes about the company's Management by Objective system, or MBOs.
Anyone familiar with the workings of the federal government has seen these highly publicized imports from the private sector--the Planning-Programming-Budgeting System (PPBS) in the Kennedy and Johnson years, Management By Objective (MBO) under Nixon, Zero-Based Budgeting (ZBB) in the Carter administration--come in with great fanfare and quietly wither away.
Other points include: "Eliminate work standards (quotas)....Eliminate management by objective. Eliminate...numerical goals" (p.
Because management by objectives and self-control become effective, the number of people or units under one manager is no longer limited by the span of control; it is limited only by the much wider span of managerial responsibility.
(TAP) - The European Union (EU) exerts no pressures on Tunisia to accelerate the pace of negotiations or compel a date for the signing of the The Deep and Comprehensive Free Trade Areas (DCFTA), said Director General of the Management by Objectives Unit in charge of DCFTA Fatma Oueslati.
To implement this provision, performance evaluation through a system of Management by Objectives (MBO) may be launched in which senior and junior officers discuss and agree upon the performance standards and objectives to be achieved for the specified future period.

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