Management by objectives (MBO) is a management model that aims to improve performance of an organization by clearly defining objectives that are agreed to by both management and employees. According to the theory, having a say in goal setting and action plans should ensure better participation and commitment among employees, as well as alignment of objectives across the organization. The term was first outlined by management guru Peter Drucker in 1954 in his book "The Practice of Management." MBO is an effective technique for performance evaluation and for motivating subordinates by its proper implementation and developing communication between executives at all levels. The present study focuses on comparison of views of employees of LIC and HDFC with regard to their general opinion about MBO practices, their say in determination of their targets and extent of participation in goal setting.
MBO, goal setting, participation, determination of targets
