Browse Definitions:
Definition

management by objective (MBO)

Contributor(s): Matthew Haughn

Management by objective (MBO) is a model in which employees and their managers collaboratively develop, define and explicitly agree to objectives. The purpose of MBO is to increase employee productivity and efficiency and, as a result, corporate performance.

Business management expert Pete Drucker developed the concepts of management by objective in his 1954 book, The Practice of Management. Drucker also provided a best practice framework for establishing objectives. According to his SMART goals evaluation scheme, objectives should be specific, measurable, achievable, realistic and time-bound.

Pete Drucker outlined the following five steps for implementing MBO:

1. Establish or clarify organizational objectives in line with the company's mission and vision.

2. Ensure that employees fully understand the objectives of the company as a whole.

3. Involve employees in determining their personal objectives to help achieve corporate goals.

4. Monitor and measure employee performance relative to the goals.

5. Evaluate progress, reward success and provide feedback.

Andy Grove, the former CEO of Intel, borrowed from management by objectives concepts to develop his OKRs (objectives and key results) model, often considered an agile version of MBO.

See John Doerr's presentation on the importance of setting goals:

This was last updated in September 2016

Continue Reading About management by objective (MBO)

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • pure risk (absolute risk)

    Pure risk, also called absolute risk, is a category of threat that is beyond human control and has only one possible outcome if ...

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

  • audit program (audit plan)

    An audit program, also called an audit plan, is an action plan that documents what procedures an auditor will follow to validate ...

SearchSecurity

SearchHealthIT

SearchDisasterRecovery

  • business continuity and disaster recovery (BCDR)

    Business continuity and disaster recovery (BCDR) are closely related practices that describe an organization's preparation for ...

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

SearchStorage

  • nearline storage

    Nearline storage is the on-site storage of data on removable media.

  • application-aware storage

    Application-aware storage is a storage system with built-in intelligence about relevant applications and their utilization ...

  • Remote Direct Memory Access (RDMA)

    Remote Direct Memory Access (RDMA) is a technology that allows computers in a network to exchange data in main memory without ...

SearchSolidStateStorage

  • 3D XPoint

    3D XPoint is memory storage technology jointly developed by Intel and Micron Technology Inc.

  • RRAM or ReRAM (resistive RAM)

    RRAM or ReRAM (resistive random access memory) is a form of nonvolatile storage that operates by changing the resistance of a ...

  • JEDEC

    JEDEC is a global industry group that develops open standards for microelectronics.

SearchCloudStorage

  • Google Cloud Storage

    Google Cloud Storage is an enterprise public cloud storage platform that can house large unstructured data sets.

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

Close