Which of the Following Is True About Management by Objectives

question 35

Multiple Choice

Which of the following is true about management by objectives (MBO) ?

• A) It assumes that achieving self-formulated objectives will reduce job performance.
• B) It is a philosophy that prioritizes personal objectives and ignores organizational objectives.
• C) It works best when the objectives of each organizational unit are derived from the objectives of the next higher unit in the organization.
• D) It requires the top management to be solely responsible for the objective-setting process.
• E) It originated from the writings of Frederick Taylor.

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Definitions:

Comparative Advantage

The capacity of a person, business, or nation to create a product or offer a service with a lesser opportunity cost compared to its rivals.

Adam Smith

A Scottish economist and philosopher, known as the "father of modern economics" for his influential works on the nature and causes of the wealth of nations, promoting the idea of free market economies.