PRIMJENA KONCEPTA UPRAVLJANJA PUTEM CILJEVA (MBO) U JAVNOM SEKTORU
APPLICATION OF THE MANAGEMENT BY OBJECTIVES (MBO) CONCEPT IN THE PUBLIC SECTOR

Summary/Abstract: Management by Objectives (MBO) represents a strategic managerial approach aimed at defining, monitoring and evaluating clearly set and measurable goals in order to increase organizational efficiency. The concept was developed by Peter Drucker in 1954, and its application in the public sector is gaining importance due to the growing demands for efficiency, responsibility and transparency of the work of public institutions. The aim of this research paper is to analyze the theoretical foundations and key principles of MBO and to consider the advantages and challenges of its application in the public sector. Special emphasis is placed on the role of managers in the process of setting and monitoring goals, as well as on the involvement of employees in performance management. The paper also considers the connection of MBO with the New Public Management (NPM) model. Although MBO contributes to better strategic planning, employee motivation and more rational use of public resources, the limitations of its application are highlighted, especially related to the complexity and immeasurable nature of public goals.

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