Chapter 3: Management By Objectives (MBO) and Management By Exception (MBE) — Online MCQ Test
COMMERCE · CLASS 12th · Tamil Nadu State Board
Practice Chapter 3: Management By Objectives (MBO) and Management By Exception (MBE) with a free chapter-wise online MCQ test.
This chapter covers: This chapter details modern managerial techniques including Management by Objectives and Management by Exception. Students study definitions process steps key features operational....
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Chapter 3: Management By Objectives (MBO) and Management By Exception (MBE) — Important Questions & Answers
What is the full form of MBO?
- A. Management by Operations
- B. Management by Objectives
- C. Monitoring by Objectives
- D. Management by Organization
Answer: B. Management by Objectives
MBO stands for Management by Objectives. It is a management technique in which goals are jointly set by managers and employees.
MBO stands for Management by Objectives. It is a management technique in which goals are jointly set by managers and employees.
MBE stands for:
- A. Management by Exception
- B. Management by Examination
- C. Management by Expansion
- D. Management by Experience
Answer: A. Management by Exception
MBE means Management by Exception. In this approach, only significant deviations from standards are brought to the attention of higher authorities.
MBE means Management by Exception. In this approach, only significant deviations from standards are brought to the attention of higher authorities.
Which of the following is NOT a feature of MBO?
- A. Clear objectives
- B. Participation
- C. Result-oriented approach
- D. Ignoring performance evaluation
Answer: D. Ignoring performance evaluation
MBO includes clear objectives, participation, and evaluation of results. Ignoring performance evaluation is not a feature of MBO.
MBO includes clear objectives, participation, and evaluation of results. Ignoring performance evaluation is not a feature of MBO.
If a sales department has a target of ₹50 lakh and actual sales are ₹49.8 lakh, the MBE manager would most likely:
- A. Intervene immediately because all deviations are exceptions
- B. Ignore it if the deviation is insignificant
- C. Cancel the target for the next period
- D. Promote the department automatically
Answer: B. Ignore it if the deviation is insignificant
Under MBE, only significant deviations need managerial attention. A very small difference may be treated as normal variation.
Under MBE, only significant deviations need managerial attention. A very small difference may be treated as normal variation.
Which of the following is NOT a basic step in the MBO process?
- A. Defining organizational objectives
- B. Setting subordinate objectives
- C. Continuous review and feedback
- D. Appointing an external auditor to approve all objectives
Answer: D. Appointing an external auditor to approve all objectives
MBO involves organizational objectives, subordinate objectives, action plans, and review. Appointing an external auditor to approve all objectives is not part of the MBO process.
MBO involves organizational objectives, subordinate objectives, action plans, and review. Appointing an external auditor to approve all objectives is not part of the MBO process.