Not new in principle, management by objectives (MBO) focuses on the goals of an institution stated as end accomplishments. Community college administrators have been attracted by the reputed benefits of MBO: increased productivity, improved planning, maximized profits, objective managerial evaluation, and improved participant morale. This paper summarizes the advantages and disadvantages of MBO learned and reported from business and industry. Problems encountered in MBO programs include: lack of total organizational commitment, lack of prerequisites to implementation, failure to integrate individual and organizational goals, overemphasis on measurable goal attainment, and inadequacies in performance appraisal. To be most effective in community colleges, MBO must have the total backing of board members and the president. Furthermore, the school must be prepared to commit extra time to implement MBO. The major determinant of the success or failure of MBO type programs is largely a result of its acceptance by users. (LP)