Chapter 5 Foundations Of Management

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Katie Tart BUS 137 FON01 Information found in: Guilford Technical Community College. Principles of Management. USA: McGraw-Hill Education, 2015. Print. BUS 137 Principles of Management Chapter 5 Foundations of Management Read the following case and answer the questions that follow, APPLICATION OF MBO Kay was excited. She had just returned from a manger’s retreat where MBO had been discussed. This had never been used in her organization, and she was enthusiastic about implementing the program in her department. She received the OK from her manager, the division head, who remembered studying MBO programs in a workshop. Kay reviewed the handout she had received at the retreat. She was still a little fuzzy on who was to choose the goals for…show more content…
3. Is it a good managerial decision to have only one department in the organization following an MB0 program, while other departments use different goal-setting methods? Explain your reasoning. It is not a good managerial decision to have only one department following MBO. For MBO to be effective, top managers must be faithful to work with middle and lower managers who work with employees to set objectives. Objectives must “cascade” down from upper management increasing in detail as they go. This is not likely to happen when only one department is following MBO. Using different goal setting methods in different departments can lead to confusion and a lack of unity within the company. For MBO to be effective, it is important for the whole company to put it into practice. 4. What is the primary purpose of MBO The primary purpose of Management by Objectives is to motivate employees. Each of MBO’s four steps involves the employee. When the employee is actively involved in the process of setting and monitoring goals, he or she is more motivated and willing to meet the goals. Instead of controlling employees, MBO allows managers to get things done by working with employees. Inspiring motivation through active participation is at the heart of MBO. 5. Give three benefits of setting deadlines as part of your MBO? a. Setting deadlines helps with motivation. The pressure of a deadline wards

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