Management by Objectives is a human resource performance management technique that entails assigning precise, measurable, attainable, relevant, and time-bound (SMART) objectives to workers and aligning these objectives with company goals.
Example
A sales manager may assign an MBO to a sales representative to raise monthly sales by 10% over the following quarter. This target is explicit (10% increase), measurable (monthly sales), attainable (with effort), relevant (contributes to sales objectives), and time-bound (in the next quarter). The employee and management would meet on a regular basis to discuss progress toward this goal and make any required modifications.
