Which of the Following Statements About Management by Objectives (MBO)

question 28

Multiple Choice

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

• A) A disadvantage of MBO is that managers are frequently reluctant to give feedback.
• B) MBO is a process whereby superior and subordinate managers of an organization jointly identify its common goals
• C) Organizations that effectively use MBO are 44.6% more productive than those that don't.
• D) MBO can cause employees to neglect important unmeasurable parts of their jobs.
• E) MBO can reduce the amount of paperwork within an organization.

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Definitions:

General Reserve

Funds set aside from profits for undisclosed general purposes, serving as a buffer for future financial uncertainties or for any identified but not immediate needs.

Joint Ventures

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project, sharing both the profits and risks.

AASB 128/IAS 28

A standard specifying the accounting treatment for investments in associates and joint ventures, focusing on the application of the equity method.