Glossary
Management By Objective (MBO)
Meaning & Definition
Management by Objectives (MBO) is a method of performance management wherein the objectives set out by employees and managers become the basis for measuring the performance of employees. These objectives have been predetermined, and they should be achieved within a particular period of time.
Importance of Management by Objectives (MBO)
- Ensures alignment between employee objectives and those of the organization.
- Increases clarity regarding roles and responsibilities.
- Boosts employee motivation.
- Makes performance appraisal easier and more objective.
- Facilitates effective monitoring and evaluation by management.
Compliance Guide & Policies
There are no statutory compliance requirements applicable directly to Management By Objectives (MBO) in India. However, organizations need to ensure that they follow fair performance evaluation practices while adopting the MBO process.
