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Making MBO Effective
Koontz, Harold
20/1  (Fall 1977): 5-13

The article focuses on management by objectives (MBO). MBO is rapidly becoming one of the most influential hallmarks of modern management, A decade ago, few companies in the world and only a rare nonbusiness enterprise were found to be operating under programs of managing by objectives. Today, in the U.S., England and elsewhere a majority of business corporations and many other kinds of organizations utilize, or think they are using, programs of MBO. MBO is perhaps potentially the most powerful tool of managing that has so far been put into practice. It is simple common sense in that it is a reflection of the purpose of managing itself. Without everyone in an organization having clear goals, managing is haphazard and random and no group or individual can expect to perform effectively. The necessity for any organized group of individuals to work together effectively to have a common purpose has long, been recognized. The key to MBO is verifiability. An objective can hardly be meaningful and actionable unless it is verifiable, that is, if at some target date in the future persons can look back and be able to know whether or not a goal has been achieved.

 


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