Evolving Concept in Management by Object

Management by objectives (MBO) is now practiced around the world. Yet, despite its wide application, it is not always clear what is meant by MBO. Some still think of it as in appraisal took; others see it as a motivational technique; still others consider MBO a planning and control device. In other words, definitions and applications of MBO differ widely. We define management by objectives as comprehensive managerial system that integrates many key managerial activities in a systematic manner and is consciously directed toward the effective and efficient achievemu of organizational and individual objectives. This view of MBO as a system of managing is not shaped by all. While some still define MBO in very narrow, limited way, we prefer to see it as a comprehensive goal -driven, success-oriented management system. Besides being used for performance appraisal, as an instrument for motivating individuals, and in strategic planning, there are still other managerial subsystems that can be integrated into the MBO process. They include human resource planning and developement (staffing as well as individual and organization developement), career planning (building on personal strengths and overcoming weakness), the reward system (paying for performance), budgeting (planning and controlling), and other managerial activities important for a specific position. These various managerial activities need to be integrated into a system. In short, MBO, to be effective, must be considered a way of managing and not an addition to the managerial job.
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Fundamentals of Management : Planning [BBA 2305]