what is management by objectives mbo 
management by objectives mbo is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees according to the theory having a say in goal setting and action plans encourages participation and commitment among employees and aligns objectives across the organization katie kerpel investopediaunderstanding management by objectives mbo management by objectives also known as management by planning is the establishment of a management information system mis to compare actual performance and achievements with the defined objectives practitioners claim the major benefits of mbo are that it improves employee motivation and commitment and allows for better communication between management and employees however a cited weakness of mbo is that it unduly emphasizes the setting of goals to attain objectives rather than working on a systematic plan to do so critics of mbo such as w edwards deming argue that setting particular goals like production targets leads workers to meet those targets by any means necessary including shortcuts that result in poor quality 1in his book that coined the term peter drucker set forth several principles for mbo objectives are laid out with the help of employees and are meant to be challenging but achievable employees receive daily feedback and the focus is on rewards rather than punishment personal growth and development are emphasized rather than negative feedback for failing to reach objectives 2mbo is not a cure all but a tool to be utilized it gives organizations a process with many practitioners claiming that the success of mbo is dependent on the support from top management clearly outlined objectives and trained managers who can implement it steps of mbombo outlines five steps that organizations should use to put the management technique into practice advantages and disadvantages mbombo comes with many advantages and disadvantages 