Which of the following statements is true regarding the management-by-objectives method?

 Definition of Management by Objectives (MBO): Management by Objectives is a performance

management approach where managers and employees work together to identify, plan, organize,

and communicate objectives. This method involves setting clear, measurable goals with defined

timelines.

 Key Benefits:

Employee Motivation: MBO aligns individual goals with organizational objectives, fostering a sense

of ownership and engagement among employees. By participating in goal-setting, employees are

more motivated to achieve these objectives, as they see a direct link between their efforts and

organizational success.

Performance Measurement: Clear objectives allow for effective performance measurement and

provide a basis for performance appraisals and feedback.

 Comparison with Other Options:

Rapid Changes: Option A is incorrect because MBO is not necessarily best suited for environments

with rapid changes, as it relies on predefined objectives that may quickly become outdated.

Mechanistic Organizations: Option B is incorrect because MBO is more effective in flexible, dynamic

organizations rather than rigid, mechanistic ones.

Strategic vs. Operational Goals: Option D is incorrect because MBO does not inherently distinguish

between strategic and operational goals; it focuses on achieving specific measurable objectives.

 Reference:

MBO helps in increasing employee motivation by involving them in the goal-setting process and

aligning their objectives with the organization’s goals, which enhances engagement and

performance.