to members’ potential force. (4) Delegation theory. It is the theory that superiors give subordinates some decision-making power in order to perform the task. After the objective having been made out, it is necessary to give subordinates appropriate power otherwise could not accomplish the aim of self-management and self-control. So the delegation is the key to heighten the result of management by objective. In certain sense, Drucker’s theory of management by objective is the form of the delegation. (5) Stimulation theory. It sets up some appropriate objectives to meet the requirement of human in order to urge a person’s motive of realizing objectives. Under the guide of the motive, people perform the behavior of objectives to fulfill the objective and to meet the demand. Drucker’s theory of management by objective is based on this theory. It sets up objective according to people’s demand and combines the objective of the organ with personal objective in order to guide people’s behavior to accomplish integrate objective.

Drucker’s theory of management by objective mainly embraces follow basic contents:

(1)The basic conception of MBO. Drucker thinks that the objective is strategy of the enterprise. To sum up, the objective is the standard or condition to accomplish in certain time and space. Drucker considers that management by objective is not only management of objective but also management by objective. Specially to say, Drucker’s theory of management by objective is that superiors and subordinates draw up a series of objectives which are linked with the result. It prescribes their main duty by objectives and thinks of these objectives as the standards that run an organ and evaluate every member. We can understand the conception of management by objective from follow aspects: Management by objective is the form of participation management; stress self-management and self-control; urge to transfer power to low level; play stress on management of result. (2) The precondition of carrying out of MBO: positive participation of superiors; participation of subordinates; ample interchange of information; the control on the means of accomplishing the objective; protect and encourage the member who dare to undertake risk; trust in member of organ. (3)The execution of MBO. Drucker think that MBO embraced three stages: Draw up objectives; Carry out objectives; Examine and evaluate the result.

The implement of Drucker’s theory of management by objective. Drucker’s theory of management by objective has been widely used in the world.(1) The implement in the