MANAGEMENT BY OBJECTIVES How does MBO complement the planning function of management? What are its advantages and disadvantages? What are your conclusions on its use.

Management by Objectives (MBO) was first introduced by Drucker in the 1950's as a system called 'management by objectives and self-control' (Dinesh & Palmer, 1998.) The original basis for the system, as defined by Drucker, was that an organisation would be more successful if "their efforts all pull in the same direction, and their contributions fit together to produce a whole, without gaps, without friction, without necessary duplication of effort..." (Drucker 1955, sited in Dinesh &…

…amp;amp; Palmer, E. 1998, 'Management by objectives and the balanced scorecard: will Rome fall again?', Management Decision, vol. 36, iss. 6, pp. 363-369. Reddin, W.J. & Kehroe, P.T. 1974, Effective MBO for Irish managers, Mount Salus press, Dublin. Schermerhorn, J.R., Campling, J., Poole, D. & Wiesner, R. 2004, Management: An Asia-Pacific perspective ,John Wiley and Sons Australia, Milton, QLD. Van Tassel, J.D. 1995, 'Death to MBO', Training and development, vol. 49, iss. 3, pp. 2-5.