MBO—Twenty years later,where do we stand?: A preliminary evaluation

Although the management system known as management by objectives, or MBO, has existed for only twenty years, any significant validation of its effectiveness has yet to be done. Serving as a preliminary evaluation for MBO, this article traces the important steps in the development of the system and makes some general appraisals on the extent to which it has been adopted. Some of the primary changes which MBO created in the management process are discussed, as well as some of the reasons why MBO has failed in certain situations. Finally, the author considers the future of MBO—what its past and present indicate its place in management systems will be.