stem of Managerial Leadership, (1965) George Odiorne describes an alternate management theory when he defines the term "management by objective" and describes the conditions under which it could work effectively. Using management by objective, an organization sets overall objectives. Managers then establish objectives for each employee. Odiorne defines this as a process in which manager and subordinate jointly identify objectives, define individual major areas of responsibility in terms of results expected.
Odiorne describes his theory as an overall framework used to guide the organization and define its direction. He adds that management by objective concentrates on the output of the organization, evaluating people by assessing their contribution to this output. MBO requires that each individual have the freedom to perform a well-defined task without interference. The premise behind MBO is this: What which is not measured will not be improved upon (Odiorne, 1965, 21). Management by objec
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