CSEET · Business Laws and Management · Introduction to Management
Which of the following is the first step in the Management by Objectives (MBO) process as popularised by Peter Drucker?
The first step in Management by Objectives is setting or defining the organisational objectives. Once the overall goals are clear, they are translated into departmental and individual targets, progress is reviewed, and rewards are linked. Appraisal, correction and rewarding all follow after objectives exist.
- AAppraising the performance of subordinates
- BSetting or defining organisational objectivesCorrect
- CTaking corrective action on deviations
- DRewarding employees on results achieved
Explanation
MBO begins with fixing the objectives of the organisation. Only after objectives are set can they be cascaded to units and individuals, performance be reviewed and rewards be linked. Appraisal and rewards come later in the cycle, so they cannot be the first step.
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