Who used the term Management by Objectives (MBO) for the first time?

Who used the term Management by Objectives (MBO) for the first time? Correct Answer Peter Drucker

Management by objectives (MBO)

  • It is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.
  • According to the theory, having a say in goal setting and action plans encourages participation and commitment among employees, as well as aligning objectives across the organization. 
  • The term was first outlined by management guru Peter Drucker in his 1954 book, The Practice of Management. 
  • Critics of MBO argue that it leads to employees trying to achieve the set goals by any means necessary, often at the cost of the company.

Related Questions

An advantage of Management by Objectives (MBO) is
The dark place contains which type of management?
Values and Ethics in Management mcq question image