Background research due to the high market demand toward ground transportation, rail priority particularly subject to punctuality, speed and convenience, PT KAI to diversify its business by holding economy class, business executives to meet market needs. This research method using this qualitative study, researchers used an interpretative paradigm. Interpretative paradigm aims to understand the meaning of behaviour, symbols, and phenomena using purposive sampling. The technique of collecting data using interviews, documentation, and observation. The results of this study that the concept of management by objectives in PT KAI station Tulungagung items, namely the implementation of the motivation for the achievement of common goals between leaders and subordinates to obtain an opinion about the company's objectives and plans of cooperation, as well as efforts to achieve within a predetermined time together. Involve; every employee and manager to discuss, agree, autonomous binding assignment of responsibility, the implementation of the goals within the specified time together. Process and checking the implementation of the planning of the work carried out jointly between leaders and subordinates to discuss what has been what has not been achieved through progress review.