The research aims to clarify the concept of management by objectives and its role in improving project management by improving employee performance. It also explains the importance of management by objectives and clarifies the concept of project management, its importance, and the factors that help improve it. It also describes the concept of employee performance and the factors that help improve and develop performance. In order to test the research hypothesis, the statistical analysis program (SPSS) was used. The research sample was a group of Iraqi companies, and the research sample was 199. After conducting the statistical analysis, it appeared that management by objectives plays a significant and positive role in improving project management by developing project management factors (human resources, costs, time). It also improves employee performance by developing (commitment, efficiency, and time). This requires the company's management to take serious steps to develop a strategy based on several organizational objectives that help increase the productive efficiency of employees. In addition, the company should use a performance evaluation system for employees in order to correct errors and address future problems.