MBO- Management by Objective or Appraisal by Results

MBO was developed by Peter Drucker in 1954. He called it ‘management by objectives and self-control.’ 

Since the MBO has become an effective and operational technique of performance appraisal and a powerful philosophy of managing. 

It is also known as Work Planning and Review or Goal Setting Approach to Appraisal.

“It is a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individual’s major areas of responsibility in terms of results expected of him/her and use these measures as guides for operating the unit and assessing the contributions of each its members”. 

MBO involves appraisal of performance against clear, time-bound, and mutually agreed job goals.