Mm

Abstract

The concept of management by objectives was developed by Peter Drucker in the 1950s. This management concept relies on the defining of objectives for each employee and then comparing their performance, and directing that performance, against the objectives which have already been set. MBO requires that clear objectives are set, and that every employee is perfectly well aware of what is expected of them, a factor which often means that the employees themselves have a considerable input into the setting of the objectives. Also at MBO’s heart is delegation, as it requires employees to take a responsibility for the achievement of objectives. It is recognized that employees are much more able and willing to seek to achieve their objectives if they have some degree of independence in how those objectives are achieved, rather than being led or directed overtly by management.