Dear Samacheer Kalvi Students, here are the Management By Objectives – Class 12 Text Book Solutions for your reference and study.
Click here for Commerce Text Book Solutions Lessons 1-28
I. Choose the Correct Answers:
| 1. ___________ System gives full Scope to the Individual Strength and Responsibility. | |
| (a) MBO | (b) MBE |
| (c) MBM | (d) MBA |
| 2. Which is the First step in Process of MBO? | |
| (a) Fixing Key Result Area | (b) Appraisal of Activities |
| (c) Matching Resources with Activities | (d) Defining Organisational Objectives |
| 3. __________ keeps Management Alert to Opportunities and Threats by Identifying Critical Problems. | |
| (a) MBA | (b) MBE |
| (c) MBM | (d) MBO |
| 4. Delegation of Authority is Easily Done with the Help of __________ . | |
| (a) MBM | (b) MBE |
| (c) MBO | (d) MBA |
| 5. MBO is popularised in the USA by __________ . | |
| (a) Prof. Reddin | (b) George Odiorne |
| (c) Henry Fayol | (d) F.W Taylor |
II. Very Short Answer Questions:
1. What are the objectives of MBO?
Answer: Management by objectives has many objectives. They include:
i. to measure and judge performance
ii. to relate individual performance to organisational goals
2. Bring out the meaning of MBE.
Answer: Management by exception is a style of business management that focuses on identifying and handling cases that deviate from the norm.
3. Mention any two advantages of MBO?
Answer: Two advantages of MBO are:
- MBO process helps the managers to understand their role in the total organisation.
- Manager recognises the need for planning and appreciates the planning.
4. What is known as KRA?
Answer: Key result areas are fixed on the basis of organisational objectives premises. Key Result Areas (KRA) are arranged on a priority basis. KRA indicates the strength of an organisation. The examples of KRA are profitability, market standing, innovation etc.
III. Short Answer Questions:
1. Write the features of MBO.
Answer: The features of MBO are:
- An attempt is made by the management to integrate the goals of an organisation and individuals. This will lead to effective management.
- MBO tries to combine the long run goals of organisation with short run goals.
- Management tries to relate the organisation goals with society goals.
- MBO’s emphasis is not only on goals but also on effective performance.
- It pays constant attention to refining, modifying and improving the goals and changing the approaches to achieve the goals on the basis of experience.
- It increases the organisational capability of achieving goals at all levels.
- A high degree of motivation and satisfaction is available to employees through MBO.
- Recognises the participation of employees in goal setting process.
- Aims at replacing the exercise of authority with consultations.
- Encourages a climate of trust, goodwill and a will to perform.
2. What are the Process of MBE?
Answer: Primarily, it is necessary to set objectives or norms with predictable or estimated results. These performances are assessed and get equated to the actual performance. Next, the deviation gets analysed. With an insignificant or no deviation, no action is required and senior managers can concentrate on other matters. If actual performances deviates significantly, the issue needs to be passed to the senior managers, as an “exception has occurred”. Finally, the aim is to solve this “exception” immediately.
3. List out any three process of MBO.
Answer: Any three process of MBO includes:
- Defining Organisational Objectives
- Goals of Each Section
- Fixing Key Result Areas
IV. Long Answer Questions:
1. What are the major advantages of MBO? (any 5)
Answer: Five major advantages of MBO are:
- Managers are involved in objectives setting at various levels of management under MBO and this commitment ensures hard work to achieve them.
- MBO process helps the managers to understand their role in the total organisation.
- Manager recognises the need for planning and appreciates the planning.
- MBO provides a foundation for participative management. Sub-ordinates are also involved in goal setting.
- Systematic evaluation of performance is made with the help of MBO.
2. What are the advantages of MBE? (any 5)
Answer: Five major advantages of MBE include:
- It saves the time of managers because they deal only with exceptional matters. Routine problems are left to subordinates.
- It focuses managerial attention on major problems. As a result, there is better utilisation of managerial talents and energy.
- It facilitates delegation of authority. Top management concentrates on strategic decisions and operational decisions are left to the lower levels. There is increase in span of control. This leads to motivation and development of subordinates.
- MBE keeps management alert to opportunities and threats by identifying critical problems. It can avoid uninformed and impulsive action.
3. Discuss the disadvantages of MBE.
Answer: The disadvantages of MBE are:
- The main disadvantage of MBE is, only managers have the power over really important decisions. This can be demotivating for employees at a lower level.
- It takes time to pass the issues to managers. Managing employees who deviate from standard procedures is challenging. These compliance failures are difficult to handle, often resulting in the employees having limited job duties and, ultimately, being dismissed or terminated.
If you have any questions on this topic, please let us know in the comments section.
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