Management by objectives (MBO) requires a Theory X management climate.

Management by objectives (MBO) does not necessarily require a Theory X management climate, which assumes that employees are inherently lazy and need to be controlled and closely supervised. MBO can be used in a Theory Y management climate, which assumes that employees are self-motivated and can be trusted to work independently towards common goals. MBO focuses on setting specific goals and objectives, aligning them with the organization's mission and strategy, and providing regular feedback and performance evaluations to help employees achieve those goals.