The credit of developing MBO goes to Peter Drucker.He emphasised that the performance of each job should be directed towards the achievement of whole business objectives.It is also known as management by motivation,managament by exception,management by results etc.
- It focuses on goals & their achievement.
- It includes long term & short term objectives.
- the philosophy of MBO views the organization has a dynamic entity.
- it gives emphasis on effective performance.
- effective participation & involvement by each member is required to set up goals & its achivement.
- it gives guidelines for appropriate systems,procedures,delegation of authority,allocation of resources etc.
- periodic review of performance is an essential feature of MBO.
- The technique of MBO establishes a community of interest &shared sense of vision among all the managers.
- Setting objectives
- developing action plan
- conducting periodic review
- performance appraisal