The application of MBO can help organisations in fulfilling the objectives of their projects. As the name suggests, MBO is a process of defining the objectives of a project, so that the human resources aligned with a project and the management of the organisation can understand the set objectives and perform accordingly.

MBO was introduced by Peter Drucker in his 1954 book “The Practice of Management”. It gained huge popularity immediately and most Management by Results (MBR). MBO in project management seeks to align the objectives of each personnel with the objectives of the project.