Quiz & Worksheet - The MBO Process Study.com
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Course
106
Subject
Communications
Date
Jan 9, 2024
Type
Pages
12
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What Is Management by Objective? - De
�
ning the MBO
Process - Quiz & Worksheet
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Business 106: Human
Resource Management
Course Practice
12 chapters | 103 quizzes
Course Progress
56 / 103 quizzes
Ch 1. Overview of HRM Field
Ch 2. Organizational Theories & Human
Resources
Ch 3. Job Analysis and Design
Ch 4. Sta
�
ng in Organizations
Ch 5. Training and Development in
Organizations
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How is Management by Objective (MBO) BEST de
�
ned?
Explanation
Peter Drucker developed the concept of Management by Objective (MBO). He believed if a
company banded together to set objectives collectively, then the reward would be much
greater than just passing down the objectives from upper management. He believed that if
employees were part of the objective setting process, the bene
�
ts would be tremendous
and help the company to achieve its goals.
Which of the following is NOT part of the Management by Objective
(MBO) process?
Get the correct answer in the lesson and try again!
Your Answer
Managers and employees collaborate to set objectives; their collective buy-in increases the
organization's success.
Watch Correct Answer Read Answer Explanation
Performance Appraisals: Bene
�
ts
and Challenges
4:41
Uses of Performance Appraisals:
Administrative and
Developmental
4:16
Importance of Reliability,
Acceptability, Sensitivity &
Practicality in Performance
Appraisals
3:42
Types of Performance Appraisal:
Trait, Behavioral & Results
3:30
Common Appraisal Methods |
Pros & Cons
4:20
Common Appraisal Methods 2:
Narratives, Forced Choice &
3:52
Ch 6. Performance Appraisals
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Explanation
The Management by Objective (MBO) process involves management enlisting employees to
help develop the company's objectives. When they meet, management lists several areas
that they believe the company needs to focus on and asks for employees' opinion on those
objectives. As the team works, they develop a consensus of what objectives the company
should have, and everyone agrees. All parties leave the room with a clear understanding of
what the company is doing and why.
Which of the following statements is FALSE regarding the role of
employees in the Management by Objective (MBO) process?
Your Answer
Management enlists employees in helping to develop the company's objectives.
Watch Correct Answer Read Answer Explanation
Your Answer
Employees are able to bene
�
t �
nancially by purchasing stock in the company.
Watch Correct Answer Read Answer Explanation
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Explanation
The results of the Management by Objective (MBO) process for employees include: being
able to speak without fear of reprisal or appearing to be a 'big mouth,' knowing their
opinions will be heard and reviewed, sharing common goals, and forming a more tightly
knit, focused organization.
Which of the following was established by Peter Drucker's
Management by Objective (MBO) concept?
Explanation
Peter Drucker's Management by Objective (MBO) concept was truly the start of
management involving employees. MBO involves management listening to those
individuals who actually do the work and marrying that with the thoughts and ideas of
management.
Which of the following is NOT a bene
�
t of Management by Objective
(MBO)?
Your Answer
It started the practice of management listening to employees, and marrying that with the
thoughts and ideas of management.
Watch Correct Answer Read Answer Explanation
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Explanation
Some of the results (or bene
�
ts) of MBO include employees being more motivated because
they have input into how the company is run, employees feeling a sense of ownership in
the direction of the company, which carries over to an increased sense of accountability
and responsibility in the jobs they perform, and communication improving dramatically
since employees have a voice and a say and can speak without fear of reprisal. The price of
a company's stock increasing is not a bene
�
t of MBO.
Your Answer
Communication increases throughout the company.
Watch Correct Answer Read Answer Explanation
Worksheet
Print Worksheet
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a. b. c. d. e. 1. Which of the following is NOT part of the Management by
Objective (MBO) process?
Management and employees come to a consensus on the objectives.
Management has the �
nal say on the company's objectives.
Employees are asked to provide their input toward establishing the
company objectives.
Management states the areas of the company that need the most focus and
why.
Management enlists employees in helping to develop the company's
objectives.
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a. b. c. d. 2. How is Management by Objective (MBO) BEST de
�
ned?
Employees can o
�
er their opinions, but their opinions will not be reviewed
or acted upon.
Employees do not need to know the company's objectives or the reasons
behind them.
Managers and employees collaborate to set objectives; their collective buy-
in increases the organization's success.
Managers should direct the company, and employees do what their jobs say
they should do.
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a. b. c. d. 3. Which of the following was established by Peter Drucker's
Management by Objective (MBO) concept?
It con
�
rmed that employees are unable to focus without clear direction set
by management.
It empowered employees to do whatever they want without consulting
management.
It started the practice of management listening to employees, and marrying
that with the thoughts and ideas of management.
It rea
�
rmed that managers should direct a company and establish its
objectives.
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a. b. c. d. e. 4. Which of the following statements is FALSE regarding the role
of employees in the Management by Objective (MBO) process?
Employees will share common goals.
Employees can speak without fear of reprisal or appearing to be a 'big
mouth.'
Employees know their opinions will be heard and reviewed.
Employees tend to form a more tightly knit, focused organization.
Employees are able to bene
�
t �
nancially by purchasing stock in the
company.
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a. b. c. d. e. About This Quiz & Worksheet
The MBO process is important in business, and this quiz/worksheet will help you test your
understanding of its bene
�
ts and characteristics.
Quiz & Worksheet Goals
In these assessments you'll be tested on the bene
�
ts, traits and theories of:
5. Which of the following is NOT a bene
�
t of Management by
Objective (MBO)?
Employees have an increased sense of accountability.
A company's stock increases in price.
Employees have a sense of ownership.
Employees are more motivated.
Communication increases throughout the company.
Print Worksheet
About This Quiz & Worksheet
Quiz & Worksheet - The MBO Process | Study.com
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• MBO on organizations
• MBO on employees
• The Practice of Management
• MBO
Skills Practiced
This quiz and worksheet allow students to test the following skills:
• Distinguishing di
�
erences
- compare and contrast the bene
�
ts of MBO on
organizations and employees
• Reading comprehension
- ensure that you draw the most important information from
the lesson on the e
�
ects and traits of MBO
• Information recall
- access the knowledge you've gained regarding The Practice of
Management
Additional Learning
To learn more about MBO, review the accompanying lesson, What is Management by Objective?
- De
�
ning the MBO Process. This lesson covers the following objectives:
• Understand what constitutes MBO
• Familiarize yourself with the origins of MBO
• Know the bene
�
ts and e
�
ects of MBO
Practice Exams
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