Which of the following is true about the MBO system?
A) All individuals in the organization work with their managers to set objectives.
B) The managers dictate the objectives to the employees.
C) It is an informal system of setting objectives.
D) The monitoring system is strictly based on personality.

Question

Quizplus · Accepted Answer

The MBO (Management by Objectives) system involves a collaborative process between employees and their managers to set objectives that are specific, measurable, achievable, relevant, and time-bound (SMART). It is a formal system that emphasizes goal-setting and measurement, and regular monitoring and feedback to ensure that objectives are achieved. Thus, option A is correct. Option B is incorrect because the MBO system is a collaborative process that involves employee involvement and commitment, and not a dictate of objectives by managers. Option C is incorrect because the MBO system is a formal system that involves structured goal-setting and measurement, and not an informal process. Option D is incorrect because the monitoring system in the MBO system is based on objective performance measures rather than personality traits.

Which of the Following Is True About the MBO System