Management by Objectives is a performance management approach in human resources that involves setting specific, measurable, achievable, relevant, and time-bound (SMART) objectives for employees and aligning these objectives with organizational goals.

Example
A sales manager may set an MBO for a sales representative to increase their monthly sales by 10% within the next quarter. This objective is specific (10% increase), measurable (monthly sales), achievable (with effort), relevant (contributes to sales goals), and time-bound (within the next quarter). The employee and manager would periodically review progress toward this objective and make necessary adjustments.