Abstract
Management by Objectives was introduced just over 30 years ago by Peter Drucker. It has been one of the most widely written business topics but, in spite of this, there has been a continuing controversy about the meaning of MBO and whether it has been of value. The author argues that most of the problems have been due to the lack of a generally accepted definition. A new and comprehensive definition, based on Peter Drucker's original work on the subject, is presented. The author believes that this definition will help organizations use MBO to increase productivity, improve quality, lower costs, make faster decisions and serve customers better.
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