Peter Drucker - MBO

A system in which the objectives of an organization are agreed upon so that management and employees understand a common way forward is called managing for objectives A.K.A (MBO)

It equals to greater efficiency through systematic procedures, good employee motivation and participation in the planning process, and managing for results instead of planning just for work. MBO practices, defined objectives and determined jointly by line managers and their subordinates, progress toward agreed-upon objectives is reviewed, and end results are evaluated, and rewarded accordingly to the progress. Remember rewarding is very important.

According to me the objectives must have a five criteria:

(1) Order of their importance.

(2) Should be quantitative, wherever possible.

(3) Realistic, (you could adapt SMART KPI’s for this).

(4) Consistent with the organization's policies, and its vision and mission.

(5) Compatible with one another.