I selected the management theory Management by Objectives (MBO) because it is most related to my business ideas and current work environment. The MBO approach uses many familiar processes that I am used to, such as goal setting, employee participation, and feedback. Using all of these tools has helped increase overall work performance and has helped provide more informed employees and management teams. Management performance must correspond to the company's own objectives (Drucker, 2001). In most companies there is a central problem and this theory helps to analyze the problem to get short and then long term solutions. In management, profit objectives are analyzed from the budgeted results. MBO will help to develop new strategies to achieve the intended goal (Ford, 1980). This approach offers great open communication for the entire management participant. Peter Drucker developed the concept of MBO and it has been used by management for more than two decades (Drucker, 1998). One of the main applications of Management by Objectives is the definition of measurable objectives that can be achieved in a specific period of time. This helps management to be able to evaluate individuals' talents and match them to the needs of the organization (Ford, 1980). Employees are given set feedback times to be evaluated. During this period, the employee's development is discussed and any necessary adjustments to goals are determined. This helps keep all employees better informed and will create greater job satisfaction (Drucker, 2001). Every employee will have input into the goal-setting process. This is very effective in building employee recognition. An employee involved in the set goals would be more exciting... middle of paper......d keeps everything fresh in the minds of the employees. Works cited Drucker's development of the "strategy-focused" organization. (2001). Corporate University Review, 9(1), 6. Retrieved from Business Source Complete database Ford, R., McLaughlin, F., & Nixdorf, J. (1980). Ten questions about MBO. California Management Review, 23(2), 88–94. Retrieved from the Business Source Complete Knowledge Management database. Harvard Business School Press, 1998. pp. 1-19.Nadler, R.S. (1998) Teamwork is an unnatural act, PIHRA Scope, June, Vol.XLXI, No.6Peter F. Drucker. “The Rise of the New Organization” in Harvard Business Review Quigley, P. (1993). Can management by objectives be compatible with quality? Industrial Engineering, 25(7), 14. Retrieved from the Comprehensive Business Source DatabaseWeihrich, Heinz. “A new approach to MBO.” Management world. January 2003.