Final answer:
Management By Objectives (MBO) is a management approach that involves setting specific objectives for employees and aligning them with the overall goals of the organization. It improves employee motivation and accountability, increases alignment between individual and organizational goals, and promotes a results-oriented work culture.
Step-by-step explanation:
Management By Objectives (MBO) is a management approach that involves setting specific objectives for employees and then aligning them with the overall goals of the organization. This approach emphasizes clear communication, employee participation, and performance measurement. MBO is important because it helps to improve employee motivation and accountability, increases alignment between individual and organizational goals, and promotes a results-oriented work culture.
For example, let's say a company's overall goal is to increase customer satisfaction. Through MBO, the manager sets specific objectives for each employee that contribute to this goal, such as reducing response times to customer inquiries or improving product quality. By regularly reviewing progress and providing feedback, MBO helps employees stay focused on achieving these objectives and ultimately contributes to the overall success of the organization.