| Abstract |
The management by objectives (MBO) approach to management is detailed. Components, operations, and applications of the MBO system are discussed. Procedures are outlined for applying the MBO system to a nonprofit organization. Examples of actual MBO applications are included from many representative organizations in the nonprofit sector to show how MBO can improve organizational and managerial effectiveness. MBO is defined as a systematic approach to achieving desired goals. It is viewed as a systems approach since it encompasses objectives, plans, managerial direction and action, control (monitoring), and feedback. The evolution and status of MBO are reviewed. Special considerations in the MBO approach are noted, including needs determination, the ordering of priorities, management training, control over subordinates, competition for resources, role conflict, motivational recognition, performance evaluation, short-term planning, and bureaucracy. The objective setting process in MBO is detailed. Particular attention is given to performance evaluation, potential limitations of MBO, benefits of MBO, and MBO implementation. A bibliography is provided. |
