Question

In the 1960s, Peter Drucker designed a method of management that includes employees in goal setting, known as which of the following?

Option 1: Total Quality Management
Option 2: Six Sigma
Option 3: Management by Objectives (MBO)
Option 4: Lean Management

Answer 1

Peter Drucker's method of including employees in goal setting in the 1960s is called Management by Objectives (MBO), focusing on participation and aligning organizational and employee objectives.

Step-by-step explanation:

In the 1960s, Peter Drucker designed a method of management that includes employees in goal setting, which is known as Management by Objectives (MBO). MBO is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed upon by both management and employees. The model encourages participation and allows employees to have a say in the goal-setting process, which aligns with the Theory Y approach to management, where managers believe that employees find satisfaction in their work and perform better when they are involved in decisions. Unlike MBO, Total Quality Management, Six Sigma, and Lean Management are different methodologies that focus on continuous improvement and efficiency in the production process and quality control.