Management by objectives (MBO)
A) is a norm-referenced format for performance appraisals
B) uses an absolute standard against which each employee is rated
C) begins with the establishment of employee objectives for the upcoming performance period
D) is an input-based format for performance appraisals
E) produces immediate increases in productivity for every company that has implemented the system

Question

Quizplus · Accepted Answer

Management by objectives (MBO) is a process that begins with the establishment of employee objectives for the upcoming performance period. The objectives are set by mutual agreement between the manager and employee and serve as the basis for performance evaluation at the end of the period. MBO is not a norm-referenced format (A) or an absolute standard (B) for performance appraisals, nor is it an input-based format (D) or guaranteed to produce immediate increases in productivity for every company (E).

Management by Objectives (MBO)