CSEET · Business Laws and Management · Introduction to Management
Consider these statements about Management by Objectives (MBO): I. Objectives are set through participation of superiors and subordinates. II. Objectives are imposed by top management without any consultation. III. Performance is periodically reviewed against the agreed objectives. Which statements are correct?
Statements I and III are correct. MBO is participative, with superiors and subordinates agreeing objectives together, and performance is reviewed periodically against those objectives. Imposing objectives without consultation contradicts the MBO approach, so statement II is incorrect.
- AI and II only
- BII and III only
- CI and III onlyCorrect
- DI, II and III
Explanation
MBO relies on joint goal setting between superior and subordinate and on periodic review of results against agreed goals. Statement II describes top-down imposition, which is contrary to the participative nature of MBO, so options containing II are wrong.
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