management by objectives

Also found in: Dictionary, Medical, Acronyms, Wikipedia.
Related to management by objectives: Management By Exception

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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 ?
Among them, employment of management by objectives, carrier plan, TQM, meeting and business plan within health organizations positively impact both on their performances and competitiveness.
Management by objectives is also above the period average for all 10 periods.
Management by objectives is linked to the concept of managerial self-control and makes it possible to replace "management by domination." Indeed, perhaps the "greatest advantage of management by objectives" is that managers can control their own performance.
That was a large part of the early successes of concepts like management by objectives, quality circles, and business process reengineering.
Utilizing a management by objectives approach, safety must be managed like every other critical company operation--sales, marketing, production, distribution, finance.
Certain scholars might argue against the inclusion of MBO, noting the work of Rodgers and Hunter (1991), which suggested that management by objectives is a recognized system used for productivity enhancement.
Safety and environmental management by objectives starts with the company's overall mission statement.
I cannot recall how often I have heard some bureaucrat, consultant, or scholar say about this or that new trend, "This innovation is not like the old ..." This was said of the Program, Planning, and Budgeting System, Zero-based Budgeting, Management by Objectives, Matrix Management, Total Quality Management and lots of other innovations.
Some of you may remember MBOR or management by objectives and results, a management tool that became popular in the late sixties.
This was based on an informal, participative goal-setting approach similar to management by objectives (Terpstra and Rozell, 1994).
Professionally, George Odiorne is best known for popularizing the system of managerial leadership known as management by objectives (MBO).
There are many different types of management systems, including Management by Objectives (MBO), Total Quality Management (TQM), Quality Circles, Matrix Management, and Cross Functional Teaming.

Full browser ?