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Ch 3Management by Objectives (MBO) and Management by Exception (MBE) — Class 12 Commerce, concept-first.

Management by Objectives (MBO) is a systematic, results-oriented approach to management in which the superior and the subordinate jointly identify the organisation's common goals, define each individual's area of responsibility in terms of results expected, and use these agreed measures as a guide for running the depar…

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Key concepts

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Meaning, Origin and Features of MBO

Management by Objectives, popularised by Peter Drucker, is a participative, results-oriented approach in which superior and subordinate jointly set specific, measurable objectives that guide both day-to-day work and late…

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Chapter contents

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Meaning and Origin of Management by Objectives (MBO)

Management by Objectives (MBO) is a systematic, results-oriented approach to management in which the superior and the subordinate jointly identify the organisation's common goals, define each individu…

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Process of Management by Objectives

MBO is usually described as a cyclical process carried out in the following stages, repeated each performance period:

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Advantages and Limitations of MBO

Advantages of MBO: - Improved planning — the discipline of setting specific, measurable objectives at every level improves the quality of planning throughout the organisation.

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Meaning and Principle of Management by Exception (MBE)

Management by Exception (MBE) is a management control technique under which a manager's attention and time are deliberately reserved for significant deviations from the plan or standard, while matters…

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Advantages, Limitations and MBO vs MBE

Advantages of MBE: - Saves managerial time — routine matters within the tolerance range are handled without escalation, freeing senior management's time for genuinely important issues.

Exercises

+Show 7 questions7 questions
  1. Q1Define Management by Objectives (MBO). Who is credited with popularising this concept?Free
  2. Q2Explain any four features of Management by Objectives.Free
  3. Q3Explain, step by step, the process of Management by Objectives.Free
  4. Q4Discuss any four advantages and any three limitations of Management by Objectives.Preview
  5. Q5What is Management by Exception (MBE)? Explain the principle on which it is based.Preview
  6. Q6Explain any three advantages and any two limitations of Management by Exception.Preview
  7. Q7Distinguish between Management by Objectives and Management by Exception on any four points.Preview

Sample & Board Papers

Sample papers and previous-year board questions for this subject.

+Show 8 questions8 questions
  1. Q1List out the Management tools.Preview
  2. Q2Write any three features of MBO.Preview
  3. Q3List out the Management tools.Preview
  4. Q4Which is the first step in the process of Management By Objectives ? (a) Matching resources with objectives (b) Fixing key result area (c) D…Preview
  5. Q5Bring out the meaning of Management By Exception (MBE).Preview
  6. Q6MBO is popularised in the USA by ______. (a) Henry Fayol (b) Prof. Reddin (c) F.W. Taylor (d) George OdiornePreview
  7. Q7Delegation of Authority is easily done with the help of ________. (a) MBO (b) MBM (c) MBA (d) MBEPreview
  8. Q8List out the management tools.Preview