What is Management By Objectives?

A definition of Management By Objectives

“Management By Objectives is a strategic management model that aims to improve organizational performance by clearly defining objectives that are agreed upon by both management and employees.”

Management By Objectives in Business Glossary - What is 'an 'Management By Objectives?

Business Glossary > What is Management By Objectives?


Examples of Management By Objectives in a Sentence:

Management By Objectives aligns employees’ goals with company targets.

Our company implemented Management By Objectives last year.

Effective Management By Objectives requires clear communication.

Why is Management By Objectives Important in Business?

Management By Objectives matters because it encourages employee engagement by involving them in the goal-setting process, ensures alignment between employee activities and organizational goals, and facilitates performance measurement by focusing on clear, achievable targets.

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Associated Terms

Here are some associated business terms and synonyms for “Management By Objectives”:

  • Objective Management
  • Goal Setting Management
  • Performance Management

IBM’s Use of Management By Objectives

IBM has successfully utilized Management By Objectives to align its team goals with corporate objectives, helping the company remain competitive and innovate in the tech industry.

Final Notes on Management By Objectives

When implementing Management By Objectives, consider the following:

  • Ensuring goals are specific and measurable
  • Fostering clear communication
  • Regularly reviewing objectives

These steps can significantly enhance organizational performance.


This has been a definition of Management By Objectives meaning.

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