Certification in Supplier Diversity Practice Exam

Which of the following best describes Management by Objectives (MBO)?

1. A program focused on qualitative goals only

2. A top-down approach to goal-setting

3. A process that includes specific goals set with participation

4. A method that avoids feedback on goal progress

The correct answer is: A process that includes specific goals set with participation

Management by Objectives (MBO) is fundamentally about setting clear, specific goals for an organization or team, which are developed through a participatory process involving both managers and employees. This collaborative approach ensures that the objectives are aligned with the overall strategic direction of the organization while also considering the insights and capabilities of the team members involved. The essence of MBO lies in the process of agreeing on measurable goals, which enhances motivation and commitment from all parties involved. By engaging employees in the goal-setting process, MBO fosters a sense of ownership and accountability, ultimately leading to improved performance and job satisfaction. The focus on participation distinguishes MBO from other goal-setting strategies, allowing for better alignment of individual objectives with the broader goals of the organization. This is in stark contrast to methods that solely rely on qualitative goals or one-sided directives, which can often overlook valuable input from those who will carry out the tasks necessary to achieve those goals.