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Cyril, who manages an ATV dealership, is determined to implement management by objectlves to help
Multiple Choice
control his workers.
increase customer satisfaction.
decrease costs.
motivate his employees.
The Correct Answer and Explanation is:
The correct answer is: motivate his employees.
Explanation (300+ words):
Management by Objectives (MBO) is a strategic management model that aims to improve organizational performance by clearly defining objectives that are agreed upon by both management and employees. This method was popularized by Peter Drucker in his 1954 book The Practice of Management. It focuses on setting goals that are specific, measurable, achievable, relevant, and time-bound (SMART).
Cyril, as the manager of an ATV dealership, wants to implement MBO. The primary purpose of this approach is to motivate employees by involving them in the goal-setting process. When employees participate in setting their own objectives that align with the dealership’s overall goals, they are more likely to take ownership of their work. This sense of involvement and personal accountability naturally leads to increased motivation, engagement, and job satisfaction.
Here’s why the other choices are incorrect:
- Control his workers: While MBO provides structure and direction, it is not designed to “control” workers in a strict or authoritarian sense. It is more about collaboration and empowerment.
- Increase customer satisfaction: Improved customer satisfaction may be an indirect result of motivated employees, but it is not the primary aim of MBO. The process starts with employee motivation and alignment with company goals.
- Decrease costs: Again, cost reduction could be a long-term benefit of better management and employee performance, but it is not the core focus of MBO. Cost control is typically addressed through budgeting and operational efficiencies rather than motivational strategies.
Therefore, the best choice is that Cyril is using management by objectives to motivate his employees. By aligning individual goals with organizational aims, MBO helps employees see how their efforts contribute to the success of the business, fostering intrinsic motivation and driving performance.