<Li> It under - emphasizes the importance of the environment or context in which the goals are set . </Li> <P> That context includes everything from the availability and quality of resources, to relative buy - in by leadership and stake - holders . As an example of the influence of management buy - in as a contextual influencer, in a 1991 comprehensive review of thirty years of research on the impact of Management by Objectives, Robert Rodgers and John Hunter concluded that companies whose CEOs demonstrated high commitment to MBO showed, on average, a 56% gain in productivity . Companies with CEOs who showed low commitment only saw a 6% gain in productivity . </P> <P> When this approach is not properly set, agreed and managed by organizations, self - centered employees might be prone to distort results, falsely representing achievement of targets that were set in a short - term, narrow fashion . In this case, managing by objectives would be counterproductive . </P> <P> Management by Objectives is still practiced today, with a focus on planning and development aiding various organizations . The most recent research focuses on specific industries, specifying the practice of MBO for each . In addition, following criticism of the original MBO approach, a new formula was introduced in 2016, aiming at revitalizing it, that is the OPTIMAL MBO, which stands for its components, namely: (O) Objectives, Outside - in; (P) Profitability (budget) related goals; (T) Target Setting; (I) Incentives & Influence; (M) Measurement; (A) Agreement, Accountability, Appraisal, Appreciation; and (L) Leadership Support . </P>

What are the features of management by objectives