<P> It 's modern way of setting objectives . Management by objectives ( MBO ) , also known as management by results ( MBR ) , was first popularized by Peter Drucker in his 1954 book The Practice of Management . Management by objectives is the process of defining specific objectives within an organization that management can convey to organization members , then deciding on how to achieve each objective in sequence . This process allows managers to take work that needs to be done one step at a time to allow for a calm , yet productive work environment . This process also helps organization members to see their accomplishments as they achieve each objective , which reinforces a positive work environment and a sense of achievement . An important part of MBO is the measurement and comparison of an employee 's actual performance with the standards set . Ideally , when employees themselves have been involved with the goal - setting and choosing the course of action to be followed by them , they are more likely to fulfill their responsibilities . According to George S. Odiorne , the system of management by objectives can be described as a process whereby the superior and subordinate jointly identify common goals , define each individual 's major areas of responsibility in terms of the results expected of him or her , and use these measures as guides for operating the unit and assessing the contribution of each of its members . </P>
what is the key to successful implementation of management by objectives
defining specific objectives within an organization that management can convey to organization members , then deciding on how to achieve each objective in sequence