Management by Objectives (MBO) is a strategic management approach that promotes organisational effectiveness through participative goal setting, objective performance appraisal, continuous feedback, and clearly defined organisational objectives. Despite its widespread adoption, empirical evidence on the combined effects of these MBO dimensions on employee performance in manufacturing and service organisations in South-East Nigeria remains limited. This study examined the effect of Management by Objectives on employee performance among employees of Golden Guinea Breweries Plc, Umuahia; Tonimas Nigeria Limited, Osisioma Ngwa; and International Equitable Association, Aba South, Abia State, Nigeria. A descriptive survey research design was adopted. The study population comprised 5,820 employees, from which a sample of 360 respondents was selected using Cochran’s sample size determination formula. Data were collected using a structured questionnaire and analysed using descriptive statistics and multiple regression analysis in SPSS Version 27 at the 5% significance level. The findings revealed that participative goal setting significantly improved employee productivity, periodic performance appraisal enhanced employee effectiveness, feedback mechanisms strengthened employee commitment, and objective clarity improved the quality of work performance. The study concludes that integrating MBO practices into organisational management systems enhances employee performance and organisational effectiveness. It recommends that organisations institutionalise participative goal setting, objective performance appraisal, regular feedback, and clearly communicated objectives to achieve sustainable organisational competitiveness.

Keywords: Management by Objectives, participative goal setting, employee performance, performance appraisal, feedback mechanisms, Nigeria.