CSEET · Business Laws and Management · Introduction to Management
In Management by Objectives (MBO), who is expected to take part in setting the objectives of a subordinate's job?
Both the superior and the subordinate set the objectives jointly. MBO is a participative technique in which managers and their team members agree on targets, so that individual goals are aligned with organisational goals and the subordinate feels committed to achieving them.
- AOnly the top management, without consulting anyone
- BBoth the superior and the subordinate, jointlyCorrect
- COnly the subordinate, without the superior's involvement
- DAn external consultant appointed by the government
Explanation
MBO, popularised by Peter Drucker, is a participative process in which superior and subordinate agree on the objectives together. Option A is wrong because it describes a top-down approach, which is not MBO. Option C ignores the need to align individual goals with organisational goals.
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