Final answer:
The statement is false; Management by Objectives (MBO) includes goal setting for both individual employees and departments within an organization to align performance with strategic goals.
Step-by-step explanation:
Contrary to the statement in the question, Management by Objectives (MBO) is a performance management approach where goals are established not only for departments and units but also for individual employees. In MBO, managers work with employees to identify and clarify achievable objectives within the organization. These objectives align individual performance with the overall strategic goals of the organization. By doing so, MBO aims to improve performance at both the individual and organizational levels, with regular reviews and updates on goal progress to ensure alignment and adapt as necessary.