Management by objectives is the process of defining specific objectives within an organization that management can convey to organization members, then decide on how to achieve each objective in sequence. According to George S. Odiorne, the system of management by objectives can be described as a process whereby the superior and subordinate jointly identify common goals, define each individual's major areas of responsibility in terms of the results expected of him or her, and use these measures as guides for operating the unit and assessing the contribution of each of its members.
“The idea of management by objectives (MBO), first outlined by Peter Drucker and then developed by George Odiorne, his student, was popular in the 1960s and 1970s. In his book “The Practice of Management”, published in 1954, Drucker outlined a number of priorities for the manager of the future. Top of the list was that he or she “must manage by objectives”. John Tarrant, Drucker's biographer, reported in 1976 that Drucker once said he had first heard the term MBO used by Alfred Sloan, author of the influential “My Years with General Motors”.” - - The Economist
“The late George S. Odiorne… said that management by objectives can be explained by calling it a process where a company’s superior and subordinate managers work together to recognize the desired outcomes, define the areas of responsibility for each individual in the achievement of those goals, and establishing the measures that will be utilized as a guide to understand the performance of the team and to be able to comprehend each employee’s contribution.”- Mr Dashboard
“George Odiorne (a leading MBO consultant) defines MBO as “a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individual’s major areas of responsibility in terms of results expected, and use these measures as guides for operating the unit and assessing the contribution of each of its members.” The goals of this approach include improved performance, more communication and participation, higher morale and job satisfaction, and a better understanding of the organization’s objectives at all levels.” BINUS UNIVERSITY
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