Management Theories

Management by Objectives

Also Known As MBO

Citation Formats

General Reference

Business Atlas. "Management by Objectives." Accessed August 30, 2026. https://business.interactiveatlas.org/management-theories/management-by-objectives.

APA Style

Business Atlas. (n.d.). Management by Objectives. Retrieved August 30, 2026, from https://business.interactiveatlas.org/management-theories/management-by-objectives

BibTeX

@misc{businessatlas-management-by-objectives,
  author = {Business Atlas},
  title = {Management by Objectives},
  year = {2026},
  url = {https://business.interactiveatlas.org/management-theories/management-by-objectives},
  note = {Accessed August 30, 2026}
}

A management framework developed by Peter Drucker in 1954 in which supervisors and subordinates jointly define specific objectives and measure performance against them, on the theory that participation in goal setting raises motivation.

Facts

Core Claim

Employee involvement in setting concrete, agreed objectives increases motivation and the fulfillment of responsibilities, compared with objectives handed down unilaterally. 1

Origin Year

1954 1

Cross-Tradition Connections

Developed By

Peter Drucker

Developed by Drucker, introduced in The Practice of Management (1954).

Source Wikipedia, Management by Objectives

Sources

1. Wikipedia, Management by Objectives

Wikipedialead section

Quote, lead section

Individual goals are synchronized with the goals of the organization, with employee performance being measured and compared with set standards.

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