Multiple Choice Questions (MCQ) on Management by Objectives (MBO)

Multiple Choice Questions (MCQ) on Management by Objectives (MBO)

1-Management by Objective (MBO) is also known as

(A) Management by results

(B) Management by goals

(C) Management by planning

(D) Management by evaluation


2-Management by Objective (MBO) is a

(A) Sets of rules

(B) Series of procedure

(C) Way of thinking about management

(D) All of the above


3-In Management by Objective (MBO), the manager and subordinate jointly

(A) Identify Common goals

(B) Defines each individual’s major areas of responsibility

(C) Assess the contribution of each of its members

(D) All of the above


4-Objectives are the ______ of Management action.

(A) Design

(B) End points

(C) Starting points

(D) Planning


5-Long term objectives are aimed to be achieved

(A) Within one years

(B) Within 2 years

(C) In more than 3 years

(D) In more than 5 years


6-Mangement objectives when it is being considered must have

(A) Multiple objectives

(B) Three objectives

(C) Two objectives

(D) Single objective


7-Objectives should provide direction to

(A) Managerial activities

(B) Marketing

(C) Financing

(D) All of the above


8-The following factor(s) to be considered for establishing the company’s objectives.

(A) Personnel available

(B) Total expected demand

(C) Market area to be covered

(D) All of the above


9-Objectives are decided by

(A) Superior

(B) Subordinates

(C) Mutual consultations of both superior and subordinates

(D) None of the above


10-The following is not true for MBO

(A) It acts an effective Performance appraisal tool

(B) The superior evaluate the individual concerned

(C) It forces the management to plan the activities in a systematic way

(D) Better management and improved communication


11-The following is (are) the disadvantage(s) of Management by Objective (MBO).

(A) Inflexibility

(B) Lack of relevant skill

(C) Lack of individual motivation

(D) All of the above



1-(A), 2-(D), 3-(D), 4-(B), 5-(D), 6-(A), 7-(D), 8-(D), 9-(C), 10-(B), 11-(D)