Management by Objectives (MBO)
A strategic management model that aims to improve organizational performance by clearly defining goals agreed upon by both management and employees.
What does Management by Objectives (MBO) means in HR:
Management by Objectives (MBO) is a process in which managers and employees jointly set, record, and monitor goals for a defined period. The key premise is that by involving employees in the goal-setting process, they are more likely to take responsibility for achieving them.
This process increases motivation and improves communication within the team. Regular progress reviews allow for ongoing adjustments and feedback.
MBO focuses on results rather than activities themselves, which promotes effectiveness and goal orientation. Although it is a classic management method, its principles underpin more modern systems such as OKR and remain extremely relevant for building a culture of accountability in organizations.
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