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What is the MBO system used for in an organization?

  1. Monitoring employee performance

  2. Setting goals and objectives

  3. Managing customer feedback

  4. Organizing team-building activities

The correct answer is: Setting goals and objectives

The MBO system, which stands for Management by Objectives, is focused on setting specific, measurable goals and objectives for individuals and teams within an organization. This approach involves a collaborative process where management and employees come together to define clear goals that align with the organization’s overall mission and vision. By establishing these objectives, MBO creates a framework for accountability, as employees understand what is expected of them and can track their progress towards achieving these objectives. This system promotes clarity in expectations and fosters motivation, as employees can see how their contributions directly impact the organization’s success. Regular reviews and feedback sessions are typically part of the MBO process, allowing for adjustments to goals as needed and ensuring alignment with changing organizational priorities. While monitoring employee performance, managing customer feedback, and organizing team-building activities may be essential to operational success, they are not the primary functions of the MBO system. Therefore, setting goals and objectives is the core purpose of MBO, making it the correct answer.