Management by Objectives (MBO) and Management by Exception (MBE) One

Management by Objectives (MBO) and Management by Exception (MBE) One Mark Online Test (12th Standard Commerce)

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__________ system gives full scope to the individual strength and responsibility.

A.MBO B.MBE C.MBM D.MBA

Which is the first step in the process of MBO?

A.Fixing Key Result Area B.Appraisal of Activities C.Matching Resources with Activities D.Defining Organisational Objectives

__________ keeps management alert to opportunities and threats by identifying critical problems.

A.MBA B.MBE C.MBM D.MBO

Delegation of authority is easily done with the help of __________.

A.MBM B.MBE C.MBO D.MBA

MBO is popularised in the USA by __________.

A.Prof. Reddin B.George Odiorne C.Henry Fayol D.F.W Taylor

Who defined MBO as "the establishment of effective standards for managerial positions and the periodic conversion of those into measurable time bound objectives linked vertically and horizontally and with future planning"?

A.George Odiorne B.Prof. Reddin C.Henry Fayol D.F.W Taylor

According to George Odiorne, under MBO the common goals of an organisation are jointly identified by

A.the shareholders and the board of directors B.the superior and the sub-ordinate managers C.the top management and the government D.the workers and their trade union

MBO harmonises the goal of an individual with

A.the goal of the competitors B.the goal of the government C.the organisation's goal D.the goal of the customers

Which one of the following is NOT listed in the book as an objective of MBO?

A.To measure and judge performance B.To serve as a basis for judgements about salary and promotion C.To increase the span of control by dealing only with exceptions D.To serve as a device for organisational control and integration

Q10

How many steps does the book list in the process of MBO?

A.Five B.Six C.Seven D.Eight

Q11

Which of the following is given in the book as an example of a Key Result Area (KRA)?

A.Market standing B.Periodical review meeting C.Delegation of authority D.Job enrichment

Q12

Arrange the following steps of the MBO process in the correct order:
1) Matching resources with objectives
2) Fixing key result areas
3) Periodical review meeting activities
4) Setting subordinate objectives or targets

A.2, 4, 1, 3 B.4, 2, 1, 3 C.2, 1, 4, 3 D.1, 2, 4, 3

Q13

In the MBO process, organisational objectives are initially framed by

A.the subordinates, and then move upwards B.the top level employees, and then move downwards C.the supervisors and foremen, and then move upwards D.outside consultants, and then move downwards

Q14

In which step of MBO do the superior and subordinates meet from time to time to discuss progress, where the fixed standards may be changed but the basic conditions do not change?

A.Appraisal of activities B.Periodical review meeting activities C.Reappraisal of objectives D.Goals of each section

Q15

If certain resources such as technical personnel or scarce raw material are not adequately available, what does the MBO process require?

A.The subordinates are replaced B.The objectives of the organisation are changed accordingly C.The periodical review meeting is cancelled D.The key result areas are abolished

Q16

In the appraisal of activities step of MBO, who should take corrective action?

A.The superior B.The customers C.The shareholders D.The trade union

Q17

Why is reappraisal of objectives, the last step of MBO, needed?

A.Because subordinates always set low standards B.Because an organisation is a part of a dynamic world and conditions change C.Because the law requires objectives to be changed every year D.Because key result areas cannot be measured

Q18

Consider the following statements about the features of MBO:
1) It tries to combine the long run goals of the organisation with short run goals.
2) It tries to relate organisation goals with society goals.
3) It aims at replacing consultations with the exercise of authority.
Which of the statements given above is/are correct?

A.1 only B.1 and 2 only C.2 and 3 only D.1, 2 and 3

Q19

Assertion (A): Under MBO, decisions are taken by the management very quickly.
Reason (R): Each worker knows the purpose of taking a decision and does not oppose the decision.

A.Both A and R are true, and R is the correct explanation of A B.Both A and R are true, but R is not the correct explanation of A C.A is true, but R is false D.A is false, but R is true

Q20

According to the book, MBO emphasises only on __________ objectives.

A.long-term B.short-term C.social D.personal

Q21

Pick the odd one out with respect to the disadvantages of MBO.

A.It is a time consuming process B.It needs heavy paper work C.It is a rigid one D.It makes systematic evaluation of performance

Q22

MBO motivates the workers by __________ and makes the jobs meaningful.

A.job enrichment B.heavy paper work C.close supervision D.strict control

Q23

Management by exception is based on the belief that

A.an attempt to control everything results in controlling nothing B.every decision must be taken by the subordinates C.objectives should be set only by the workers D.short-term goals matter more than long-term goals

Q24

In the book's example, the quality standard allows five defects per 100 units produced. When is the matter reported to the production manager?

A.Whenever there is even one defect B.When the defects are exactly 5 C.When there are more than 5 defects D.Only at the end of the year

Q25

In the process of MBE, what happens when the actual performance deviates significantly from the norm?

A.No action is required B.The issue is passed to the senior managers as an exception has occurred C.The norms are cancelled D.The subordinate is promoted

Q26

Which of the following is NOT given in the book as a cause of general business exceptions?

A.Process deviation B.Infrastructure or connectivity issues C.Malformed data D.Job enrichment

Q27

Under MBE, top management concentrates on strategic decisions and leaves operational decisions to the lower levels. This leads to an increase in

A.span of control B.paper work C.the number of exceptions D.the cost of production

Q28

What is the main disadvantage of MBE according to the book?

A.It wastes the time of managers B.Only managers have power over really important decisions, which can demotivate lower-level employees C.It cannot separate important information from unimportant information D.It ignores critical problems

Q29

Which of the following is an advantage of MBE rather than of MBO?

A.The responsibility of a worker is fixed B.It saves the time of managers because they deal only with exceptional matters C.A department does not work at cross purpose with another D.Managers recognise the need for planning

Q30

Match the following:
a) George Odiorne - 1) Profitability, market standing, innovation
b) Key Result Areas - 2) Handling cases that deviate from the norm
c) MBE - 3) Eighth step of the MBO process
d) Reappraisal of objectives - 4) Popularised MBO in the USA

A.a-4, b-1, c-2, d-3 B.a-4, b-2, c-1, d-3 C.a-1, b-4, c-2, d-3 D.a-4, b-1, c-3, d-2

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About this Management by Objectives (MBO) and Management by Exception (MBE) test

This free online practice test covers Management by Objectives (MBO) and Management by Exception (MBE) from the 12th Standard Commerce (Samacheer Kalvi) syllabus. Choose the number of questions and an optional time limit, then answer and submit — everything is checked in your browser, with the correct answers and a worked explanation shown at the end. For the full solutions to every question in this set, see the solved MCQs page.

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