MANAGEMENT BY OBJECTIVES (MBO)
Meaning and Definition
Management By Objectives (MBO) is a management
system in which each member of the organisation effectively participates and
involves himself. This system gives full scope to the individual strength and
responsibility. MBO harmonises the goal of an individual with the
organisation’s goal. It creates self-control and motivates the manager into action
before somebody tells his to do something.
MBO is popularised in the USA by George Odiorne.
According to him, “MBO is a system wherein the superior and the sub-ordinate
managers of an organisation jointly identify its common goals, define each
individual’s major area of responsibility in terms of the result expected of
him and use these measures guides for operating the unit and assessing the
contribution of each of its members”.
Prof. Reddin defines MBO as, “the establishment of
effective standards for managerial positions and the periodic conversion of
those into measurable time bound objectives linked vertically and horizontally
and with future planning”.