Management by objectives originated from American management scientist peter drucker. In the book Management Practice published by 1954, he put forward the idea of "management by objectives and self-control" for the first time, and thought that "the purpose and task of an enterprise must be transformed into goals. If an enterprise does not have an overall goal and sub-goals consistent with the overall goal to guide employees' production and business activities, then the larger the enterprise, the more people there are, and the greater the possibility of internal friction and waste. " Generally speaking, management by objectives is a management system that allows managers and employees of enterprises to personally participate in the formulation of work objectives, implement "self-control" in their work, and strive to complete work objectives.

Advantages of management by objectives:

The evaluation standard of MBO directly reflects the work content of employees, and the results are easy to observe and there are few evaluation mistakes. It is also suitable for providing suggestions, feedback and counseling for employees. Because the process of management by objectives is a process in which employees participate together, the enthusiasm of employees is greatly improved, and their sense of responsibility and dedication to work are enhanced. Management by objectives helps to improve the division of responsibilities in the organizational structure. As the results of organizational goals and responsibilities are tried to be assigned to a position or department, it is easy to find defects such as insufficient authorization and unclear responsibilities.

Disadvantages of management by objectives:

Management by Objectives (MBO) does not set a unified goal among different departments and employees, so it is difficult to compare the job performance between employees and different departments horizontally, and it cannot provide a basis for future promotion decisions.