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Management by Objectives for Managers

Described by famed management scholar Peter Drucker in his 1954 book The Practice of Management, management by objectives has remained a popular and compelling method for defining goals and monitoring progress toward achieving them. Management by objectives (MBO) is a method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. Four major activities make MBO successful – set goals, develop action plans, review progress, and apprise overall performance.