is a system of goal setting and implementation that involves a cycle of discussion, review, and evaluation of objectives among top and middle managers, supervisors, and employees.

Management by objective (MBO)  is a system of goal setting and implementation that involves a cycle of discussion, review, and evaluation of objectives among top and middle managers, supervisors, and employees.

Explanation:

The concept of management by objective was first introduced by Peter Drucker in the year 1954. MBO helps in defining specific objectives within the organization. The objectives are made by the management and conveyed to the supervisors and employees of the organization.

MBO concept involves six steps. First of all the organizational goals and objectives of the employees are determined. As a next step, the performance of the employees is constantly monitored. The managers then involve in evaluating the performance of the employees. As a final step, the management provides feedback and performance appraisal.

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