Main PrincipleThe underlying principle of Management by Objectives (MBO) is to ensure that everyone within the organization has a clear understanding of the goals, or objectives, of that organization, as well as awareness of one's roles and responsibilities in achieving these objectives. The complete MBO system is about having responsible managers and employees take action to implement and realize their plans, which automatically realize those of the organization. The MBO style is appropriate for knowledge-based businesses when the staff is competent. It is appropriate in situations where you want to develop employees' management and self-leadership skills and leverage their creativity, tacit knowledge and initiative. Management by Objectives (MBO) is also used by CEOs of multinational corporations (MNCs) for their country managers abroad. In Management by Objectives (MBO) systems, objectives are written for each level of the organization and individuals are assigned specific goals and objectives. goals. “The principle behind this is to ensure that people know what the organization is trying to achieve, what their part of the organization needs to do to achieve those objectives and how, as individuals, they are expected to contribute. This assumes that the organization's plans and methods have been fully considered. If not, start by building team goals and ask team members to share the process." “The one thing an MBO system should provide is focus,” says Andy Grove who ardently practiced MBO at Intel. So, keep your goals precise and keep their number small. Most people disobey this rule, try to concentrate on everything and end up not concentrating at all. For Management by Objectives (MBO) to be effective, individual managers must understand the specific objectives of their work and how those objectives fit into the overall company objectives set by the board of directors. “A manager's work should be based on a task to be performed to achieve the company's objectives... the manager should be directed and controlled by performance objectives rather than by his boss. Managers of the various units or sub-units or sections of an organization should not only know the objectives of their unit, but should also actively participate in setting those objectives and take responsibility for them. The review mechanism allows leaders to measure the performance of their managers, especially in the areas key to the results: marketing, innovation, financial resources, physical resources, social responsibility and profit requirements However, in recent years public opinion has moved away from the idea of ​​placing managers in a formal and rigid system of objectives..