During her annual performance review, Jillian meets with her supervisor Chris to set her objectives for the next year. Chris informs Jillian that her performance in achieving these newly established objectives will be the basis for next year's merit pay increase. This is an example of what type of management system?

Question

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Chris is implementing a Management by Objectives (MBO) system by setting specific objectives for Jillian to achieve and tying her merit pay increase to her performance in achieving those objectives. MBO is a goal-setting approach that involves collaborative goal-setting between managers and employees and aligning individual goals with the overall goals of the organization.

During Her Annual Performance Review, Jillian Meets with Her Supervisor