Society For Human Resource Management (SHRM) Certified Professional Practice Exam

Which of the following categories does not apply when defining objectives in MBO?

1. Setting measurable goals

2. Reviewing team performance

3. Creating a competitive analysis

4. Aligning goals with organizational mission

The correct answer is: Creating a competitive analysis

When discussing the categories that apply when defining objectives in Management by Objectives (MBO), it is essential to focus on the fundamental components that MBO encompasses. MBO is primarily focused on collaboration between managers and employees to establish clear and measurable goals that align with the overall objectives of the organization. Setting measurable goals is critical in the MBO process, as it allows for specific targets to be established, making it easier to assess progress and achievement. Reviewing team performance is also a vital part of MBO, as it involves evaluating how well the objectives are met and providing feedback for future improvement. Furthermore, aligning goals with the organizational mission ensures that the individual and team objectives contribute meaningfully to the broader goals of the organization, fostering a sense of purpose and direction. Creating a competitive analysis, however, does not directly fall within the MBO framework. While understanding the competitive landscape can be beneficial for overall business strategy, it is not a fundamental aspect of the process of setting individual or team objectives in the MBO context. The focus of MBO is more on individual performance measures and goal alignment rather than analyzing competitors.