Productivity gains from MBO are higher when an organization has
A. top-management commitment.
B. few budget problems.
C. team rather than individual performance reviews.
D. union support.
E. nonmanagerial employee support.
A. top-management commitment.
For MBO to be successful, top management must be committed. "When top-management commitment [to MBO] was high," said one review, "the average gain in productivity was 56%. When commitment was low, the average gain in productivity was only 6%."
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