Question

Management by Objectives (MBO) is a system for achieving organizational objectives,enhancement of employee commitment and participation. Which of the following is NOT an advantage of MBO?

• A. Clarity in organizational action
• B. Personnel satisfaction
• C. Basis for organizational change
• D. Flexibility

Answer 1

The correct option is D Flexibility

Management by Objectives (MBO) is a system for achieving organizational objectives,enhancement of employee commitment and participation. Flexibility is not an advantage of MBO. This approach is appropriate of executives and supervisory personnel who can understand it in a better way. MBO is not easy to administer. It involves considerable time, thought and interaction between the superior and the subordinate.