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10 November, 15:02

During her annual performance review, Jillian meets with her supervisor Chris to discuss and set her objectives for the next year. Chris informs Jillian that her performance in achieving these newly established objectives will be the basis for next year's merit pay increase. This is an example of what type of management system?

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  1. 10 November, 18:57
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    The answer is: Management by objectives

    Explanation:

    Management by objectives (MBO) is a strategic management model developed by Peter Drucker. Drucker's main principle stated that MBO was: to determine joint objectives and to provide feedback on the results.

    According to this model, when employees participate in setting goals and action plans they will feel encouraged to participate and commit to the organization's goals. By jointly (employees + management) setting challenging but attainable objectives, employees felt empowered and motivated to fulfill those goals.
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