Students get through the TN Board 12th Commerce Important Questions Chapter 3 Management By Objectives (MBO) and Management By Exception (MBE) which is useful for their exam preparation.
TN State Board 12th Commerce Important Questions Chapter 3 Management By Objectives (MBO) and Management By Exception (MBE)
Very short answer questions
Question 1.
State a few features of MBO.
Answer:
- An attempt is made by the management to integrate the goals of an organization and individuals.
- It increases the organizational capability of achieving goals at all levels.
- MBO tries to combine the long-run goals or organization with short-run goals.
Question 2.
What are the objectives framed in matching resources?
Answer:
- The objectives are framed on the basis of the availability of resources.
- If certain resources are not adequately available the objectives of an organization are changes accordingly. So there is a need for matching resources with objectives.
Question 3.
How do solve the problems to MBO?
Answer:
- The superior should take corrective action.
- The superior should identify the reasons for the failure of achieving objectives.
- The problems faced by the subordinates should be identified and steps should be taken to tackle such problems.
Question 4.
Mention any two advantages of MBE.
Answer:
- It focuses managerial attention on major problems. As a result, there is a better utilization of managerial talents and energy.
- Management by exception provides better yardsticks for judging results. It is helpful in objective performance appraisal.
Short answer questions
Question 1.
Write a short note on setting subordinate objectives or targets?
Answer:
- The objectives of each subordinate or individual are fixed.
- There should be a free and frank discussion between the superior and his subordinates.
- Subordinates are induced to set standards themselves by giving an opportunity.
- If the subordinates are allowed to do so, they may set high standards and the chances of their accomplishment are higher.
Question 2.
Explain about periodical review meeting.
Answer:
- The superior and subordinates should hold meetings periodically in which they discuss the progress in the accomplishment of objectives.
- The fixed standards may be changed in the light of progress. But the basic conditions do not change.
- The periodical review meeting is held during the period set for achieving the objectives.
Long answer questions
Question 1.
Explain the difference between MBO and MBE.
Answer:
Management by Objectives (MBO):
- MBO is a management system in which each member of the organization effectively participates and involves himself.
- This system gives full scope to individual strength and responsibility.
- MBO is to relate individual performance to organizational goals.
- MBO is to enhance communications between superiors and subordinates.
- MBO is to serve as a device for organizational control and integration.
- MBO recognizes the participation of employees in goal-setting process.
- MBO tries to relate the organizational goal with social goals.
Management by Exception (MBE):
- Management by exception is an important principle of managerial control. It is managed by exception is business management that focuses on identifying and handling cases that deviate from the norm.
- It is necessary to set objectives or norms with predictable or estimated results.
- If actual performance and deviates significantly the issue needs to be passed to the senior managers as an “Exception has occurred”. Finally, the aim to solve this exception immediately.
- It focuses managerial attention on major problems. As a result, there is a better utilization of managerial talents and energy.
- It saves the time of managers because they deal only with exceptional matters.
- MBE keeps management alert to opportunities and threats by identifying critical problems.
- MBE provides better yardsticks for judging results. It is helpful in objective performance appraisal.
Question 2.
Explain briefly the benefits of Management by Objectives (MBO).
Answer:
Benefits of MBO:
MBO is intended primarily to measure and judge performance. An attempt is made by the management to integrate the goals of an organization and individuals.
- To clarify both the job to be done and expectations of accomplishment.
- Motivation: To stimulate the subordinate’s motivation. MBO tries to combine the long-run goals of the organization with short-run goals. It is not only on goals but also on effective performance.
- The participation of employees in the goal-setting process.
- Objectives for each section, department or division are framed on the basis of the overall objectives of the organization. The objectives should be achieved within a fixed period.
- There should be a free and frank discussion between the superior and his subordinates.
- The periodical review meeting is held during the period set for achieving the objectives.
- To top management executive should review the organization’s objectives to frame the objectives according to the changing situation.
- Objectives can be set at all levels and for all functions with future planning.
Multiple-choice questions
1. Which system creates self-control and motivates the manager?
(a) MBO
(b) Business organization
(c) MBE
(d) None
Answer:
(a) MBO
2. MBO tries to combine the goals of the organization.
(a) Long run
(b) Short-run
(c) Both (a) and (b)
(d) motivation
Answer:
(c) Both (a) and (b)
3 indicates the strength of an organization.
(a) Trust
(b) Goodwill
(c) Resources
(d) Key result areas
Answer:
(d) Key result areas
4. Give examples of (KRA) Key Result Areas.
(a) Profitability
(b) Market standing
(c) Innovation
(d) All the above
Answer:
(d) All the above
5. In process of MBO the objectives of each subordinate or individual are:
(a) changed
(b) constant
(c) fixed
(d) static
Answer:
(c) fixed
6. When is a need for matching resources with objectives?
(a) resources are not adequate
(b) available resources
(c) utilized resources
(d) none
Answer:
(a) resources are not adequate
7. In which process superior should take corrective action?
(a) Appraisal of activities
(b) KRA
(c) Matching resource
(d) Goal of each section
Answer:
(a) Appraisal of activities
8. Who is a part of the dynamic world?
(a) Management
(b) An organization
(c) Both (a) and (b)
(d) Subordinates
Answer:
(b) An organization
9. MBO motivates the:
(a) workers
(b) manager
(c) subordinates
(d) none
Answer:
(a) workers
10. MBO is a consuming process.
(a) market
(b) time
(e) strength
(d) business
Answer:
(b) time
11. In which process is better to use knowledge of trends, history, and available business data?
(a)MBO
(b)MBE
(c) Business organization
(d) Business management
Answer:
(b)MBE
12. In what way the managers save time?
(a) Deal only with exceptional matter
(b) Routine problems
(c) Job duties
(d) None
Answer:
(a) Deal only with exceptional matter
13. This lead to motivation and development of subordinates:
(a) Span of control
(b) Authority
(c) Manager
(d) All the above
Answer:
(a) Span of control
14. Systematic evaluation of performance is made with the help of:
(a) MBE
(b) MBO
(c) Both (a) and (b)
(d) None
Answer:
(b) MBO
15. MBO motivates the workers by:
(a) planning
(b) job
(c) objectives
(d) Business
Answer:
(b) job