What modern management practice involves setting specific, measurable, agreed-upon goals jointly between managers and subordinates to evaluate performance?
AManagement by Exception (MBE)
BManagement by Objectives (MBO)
CTotal Quality Management (TQM)
DBalanced Scorecard (BSC)
Explanation
• Management by Objectives (MBO), developed by Peter Drucker, aligns individual employee targets with overall strategic company goals.
• MBO emphasizes participative goal setting, tangible action plans, periodic progress reviews, and performance evaluations.
• It improves employee engagement and clarity regarding job expectations.
Exam Relevance
- Topic: Planning & Control
- Subtopic: MBO Peter Drucker

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