Management by Objectives (MBO) is a strategic management approach wherein performance goals are jointly determined by both management and employees, fostering alignment and mutual agreement on objectives and performance standards.
A management technique in which all levels of management are encouraged to specify quantitative and/or qualitative objectives to be achieved within a set period. Managers must then answer to higher levels of management for the actual performance achieved against these objectives.
MBO is an abbreviation that can refer to either 'Management Buy-Out' or 'Management by Objectives.' The term's meaning depends on the context in which it is used, encompassing significant concepts in corporate finance and management techniques respectively.
