Frostburg Fireplaces has used management by objectives (MBO) for the past year. Top managers just finished evaluating overall performance. The next step in the MBO process should be:
A) to develop new action plans.
B) to develop new goals for the next year based on the review of last year's performance.
C) to begin a new MBO "cycle," using the same goals as last year.
D) to wait several months to allow information to be digested.
E) none of these.

Question

Quizplus · Accepted Answer

The next step in the MBO process should be to develop new goals for the next year based on the review of last year's performance. This ensures that the organization is continually improving and adapting to changes in the environment. Developing new action plans may come later in the process once the goals have been set, but it is not the immediate next step. Starting a new MBO cycle using the same goals as last year would not allow for any improvements or adjustments based on the previous year's performance. Waiting several months to allow information to be digested would delay progress and potentially hinder the organization's ability to improve.

Frostburg Fireplaces Has Used Management by Objectives (MBO) for the Past