Certified Safety Professional Practice Exam 2026 - Free Practice Questions and Study Guide

Management by Objectives (MBO) is a performance management approach which emphasizes the importance of setting specific and measurable goals collaboratively between management and employees. The focus is on establishing goals that are agreed upon by both parties, ensuring that employees understand their role in achieving these objectives. This participative approach not only motivates employees but also fosters ownership and accountability for their contributions toward the organization's goals.

By involving employees in the goal-setting process, MBO enhances their commitment to achieving these goals and aligns individual performance with the overall objectives of the organization. This contrasts with approaches that are solely top-down, where goals might be set without employee input.

In the context of the other options, setting clear financial goals may be a part of an organization's strategy, but MBO is broader and focuses on collaborative goal-setting across various domains. Developing training programs, while important, is more operational and not central to the MBO philosophy. Analyzing market competition pertains to external strategic analysis rather than the internal goal-setting process that MBO champions. Thus, the emphasis on establishing goals through employee participation is what distinguishes Management by Objectives.