Question

MBO works by objectives moving through the organization; that is, top managers set general organizational objectives, which are translated into divisional objectives, which are translated into departmental objectives. The hierarchy ends in individual objectives set by each employee. This is an example of MBO working as objectives ______ through the organization.
A. move upward
B. move outward into the community
C. change significantly
D. cascade down
E. become less refined and more generalized

Answer 1

Answer:

D. cascade down

Explanation:

MBO works by objectives moving through the organization; that is, top managers set general organizational objectives, which are translated into divisional objectives, which are translated into departmental objectives. The hierarchy ends in individual objectives set by each employee. This is an example of MBO working as objectives cascade down through the organization.

Management by objectives is a model of strategic management with the purpose of improving performance in an organization through 'objectives definition'. Such defined objectives must have been predetermined and agreed by both management and employees.

As a result of employees agreeing to the objectives and being part of the organisation's goal setting, such participatory decision making generates commitment among employees, and creates alignment of objectives across the organization.