MBE vs. MBO
Roshan Budhathoki, MemberManagement by Objectives (MBO)
is a principle or practice of management that empowers employees. Employees take part in goal setting process and they get involved in the organisation which makes them more aligned to the organisation. As employees are involved in goal setting process it is more likely that they try to achieve set goals. Since, the goals motivates employees to works hard its is called management by objectives (MBO).
Management by Exception (MBE)
is a method of control. Managers intervene the work of employees only when they work outside the prescribed scope or when they can't meet the standard. Manager leaves employee free till they work within the scope and within they meet the standard.