Future Business Leaders of America (FBLA) Business Management Practice Test

Which aspect of Management By Objectives helps in motivating employees?

1. By comparing all employees to a single standard

2. By concentrating solely on outcomes

3. By involving them in goal-setting processes

4. By limiting their input on decisions

The correct answer is: By involving them in goal-setting processes

Involvement in the goal-setting process is crucial in Management By Objectives (MBO) because it fosters a sense of ownership among employees. When employees participate in defining their goals, they become more personally invested in the outcomes, leading to increased motivation. This collaborative approach not only enhances their commitment but also helps to align individual goals with the broader objectives of the organization. Furthermore, when employees contribute to the goals they are expected to achieve, it affirms their value to the organization and encourages them to strive for success. They are more likely to feel responsible for their performance, which can enhance job satisfaction and productivity. Ultimately, this participatory method is powerful in creating a motivated workforce, as individuals are more likely to put forth their best efforts when they have a say in what they are working towards.