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Management by Objectives


Definition: Management by Objectives is a participative management and employee motivation practice by Peter Drucker in which managers and employees jointly set, perform and control objectives within an organization. Such objectives should be formulated SMART (specific, measurable, achievable, realistic and time-related).
MBO aims to increase the performance of the organization by matching organizational goals with the objectives of subordinates throughout the organization.


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More on performance management: Balanced Scorecard, Benchmarking, Hawthorne Effect, Objectives and Key Results, Performance Management.

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