Objectives may be defined as the goals which an organisation tries to achieve. Objectives are described as the end- points of planning. According to Koontz and O'Donnell, "an objective is a term commonly used to indicate the end point of a management programme." Objectives constitute the purpose of the enterprise and without them no intelligent planning can take place. Objectives are, therefore, the ends towards which the activities of the enterprise are aimed. They are present not only the end-point of planning but also the end towards which organizing, directing and controlling are aimed. Objectives provide direction to various activities. They also serve as the benchmark of measuring the efficiency and effectiveness of the enterprise. Objectives make every human activity purposeful. Planning has no meaning if it is not related to certain objectives.
Features of Objectives
ü The objectives must be predetermined.
ü Objectives must be realistic.
ü Objectives must be measurable.
ü Objectives must have social sanction.
ü All objectives are interconnected and mutually supportive.
ü Objectives may be short-range, medium-range and long-range.
ü Objectives may be constructed into a hierarchy.
MBO was first popularized by Peter Drucker in 1954 in his book 'The practice of Management’. It is a process of agreeing within an organization so that management and employees buy into the objectives and understand what they are. It has a precise and written description objectives ahead, timelines for their motoring and achievement. The employees and manager agree to what the employee will attempt to achieve in a period ahead and the employee will accept and buy into the objectives.