Question: Which of the following is the first step in MBO?
A Organization’s overall objectives and strategies are formulated
B Unit managers collaboratively set specific objectives for their units with their managers
C Action plans are specified and agreed upon by managers and employees
D Major objectives are allocated among divisional and departmental units
Answer: Organization’s overall objectives and strategies are formulated
| MBO Steps |
Description |
| 1 |
Establish Organizational Objectives |
· The organization’s overall objectives and strategies are formulated. |
| 2 |
Cascade Objectives |
· Major objectives are allocated among divisional and departmental units. |
| 3 |
Set Department objectives |
· Unit managers collaboratively set specific objectives for their units with their managers. |
| 4 |
Define employee objectives |
· Managers work with employees to set individual objectives that align with unit and organizational goals. |
| 5 |
Monitor and measure progress |
· Managers and employees track progress toward objectives through regular reviews. |
| 6 |
Evaluate and provide feedback |
· Performance is assessed and feedback is provided to improve future objectives. |
| 7 |
Rewards and recognition |
· Employees may be rewarded or recognized based on their achievement of objectives. |
| 8 |
Adjust and reset objectives |
· Objectives are adjusted or reset for the next performance cycle. |
