Read the passage and answer the question:
Through their work and the efforts of others, managers in all kinds of organizational settings, whether industrial, educational, governmental, or military are attempting to run their organizations with the management by objectives process as a basic underlying management concept. Management by objectives is basically a process where by the seniors and the junior managers of an enterprise jointly identify its common goals, define each individual’s major areas of responsibility in terms of the results expected… use these measures as guides for operating the unit and assessing the contribution of each of its members. In some cases, this process has been successfully carria beyond the managerial level to include hourly employees. The concept rests in a philosophy of management that emphasizes an integration between external control by managers and self-control by employees. It can apply to any manager or individual no matter what level or function, and to any organization, regardless of size. The effective functioning of this system is an agreement between a manager and an employee about that employee’s groups performance goals during a stated time period. These goals can emphasise either output variables of intervening variables or some combination of both. The important thing is that goals are jointly established and agreed upon in advance. At the end of the time period, performance is reviewed in relation to accepted goals. Both the employee and the manager participate in this review.
In this frame of reference, how does an organisation function effectively?
- By including the hourly employees in the managerial positions
- By identifying and executing performance targets in a collaborative mode
- By imposing a rigid philosophy of management
- By providing separate work environment for both managers and workers