Define Management by Objectives (MBO)and describe how manager-employee interactions unfold when MBO is implemented.

MBO is an elaborate, systematic ongoing program designed to facilitate goal establishment, goal accomplishment, and employee development.The process unfolds as follows: the manager meets with individual workers to develop and agree on employee objectives for the coming months; there are periodic meeting to monitor employee progress in achieving objectives; an appraisal meeting is held to evaluate the extent to which the agreed-upon objectives have been achieved; the MBO cycle is repeated.