Management by Objectives (MBO) is a performance management approach where managers and employees collaboratively set specific, measurable goals. This process ensures that everyone understands their roles and responsibilities, aligning individual objectives with the overall goals of the organization. In MBO, progress is regularly reviewed, and feedback is provided to help employees stay on track. This method encourages accountability and motivation, as employees can see how their contributions impact the organization's success. Ultimately, MBO fosters a results-oriented culture that enhances productivity and job satisfaction.