Which of the following statements is true regarding the management-by-objectives method?
A.
Management by objectives is most helpful in organizations that have rapid changes
B.
Management by objectives is most helpful in mechanistic organizations with rigidly defined tasks.
C.
Management by objectives helps organizations to keep employees motivated.
D.
Management by objectives helps organizations to distinguish clearly strategic goals from operational goals
The Answer Is:
C
This question includes an explanation.
Explanation:
Definition of Management by Objectives (MBO): Management by Objectives is a performance management approach where managers and employees work together to identify, plan, organize, and communicate objectives. This method involves setting clear, measurable goals with defined timelines.
Key Benefits:
Employee Motivation: MBO aligns individual goals with organizational objectives, fostering a sense of ownership and engagement among employees. By participating in goal-setting, employees are more motivated to achieve these objectives, as they see a direct link between their efforts and organizational success.
Performance Measurement: Clear objectives allow for effective performance measurement and provide a basis for performance appraisals and feedback.
Comparison with Other Options:
Rapid Changes: Option A is incorrect because MBO is not necessarily best suited for environments with rapid changes, as it relies on predefined objectives that may quickly become outdated.
Mechanistic Organizations: Option B is incorrect because MBO is more effective in flexible, dynamic organizations rather than rigid, mechanistic ones.
Strategic vs. Operational Goals: Option D is incorrect because MBO does not inherently distinguish between strategic and operational goals; it focuses on achieving specific measurable objectives.
References:
MBO helps in increasing employee motivation by involving them in the goal-setting process and aligning their objectives with the organization’s goals, which enhances engagement and performance.
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