Management by objectives (MBO) aims to align objectives across organizational levels. Which of the following statements about MBO is NOT true?

Introduction / Context:
Management by objectives (MBO) is a management approach in which managers and employees jointly set measurable objectives and then periodically review progress toward those objectives. It emphasizes alignment between organizational levels and provides a structure that can integrate well with project management practices. PMP style questions may ask which statements correctly describe MBO and which contradict its principles.

Given Data / Assumptions:

• MBO involves setting specific, measurable objectives at different organizational levels.
• Objectives at one level should support objectives at higher and lower levels.
• Progress toward objectives is periodically reviewed.
• Corrective actions or adjustments can be made when performance differs from expectations.
• The question asks which statement is NOT true about MBO.

Concept / Approach:
In MBO, managers and staff work together to establish clear, achievable objectives and to ensure that those objectives are aligned throughout the organization. Because performance is monitored against these objectives, corrective actions are a built in part of the process: if objectives are not being met or circumstances change, plans and sometimes the objectives themselves may need to be adjusted. An assertion that MBO does not involve corrective actions or that objectives should never be reviewed clearly contradicts the fundamental idea of MBO and is therefore the false statement the question is asking about.

Step-by-Step Solution:
Step 1: Recall that MBO emphasizes setting measurable objectives and then periodically reviewing performance against them. Step 2: Recognize that feedback and corrective actions are integral to continuous improvement in an MBO environment. Step 3: Examine each answer option and identify which one conflicts with these principles. Step 4: Notice that option B claims corrective actions are not part of the process and that objectives should never be adjusted or reviewed. Step 5: Conclude that option B is NOT true about MBO, while the other statements describe real characteristics of the approach.

Verification / Alternative check:
Descriptions of MBO in management literature always include a cycle of setting objectives, measuring performance, and taking corrective action when necessary. Without the ability to adjust plans or address shortfalls, MBO would be a static system unable to respond to change. This directly contradicts option B. The other options, such as having a top down orientation and needing clear objectives, are consistent with standard MBO descriptions and fit naturally with project management's use of defined goals and metrics.

Why Other Options Are Wrong:
Option A correctly notes the top down orientation of MBO, where higher level goals cascade into departmental and individual objectives. Option C is correct because setting clear, achievable objectives is fundamental to being able to measure performance. Option D is also true; MBO fits well with project management because projects rely on explicit objectives and performance measures. Option E is accurate in describing alignment across organizational levels. Only option B incorrectly states that corrective actions are not part of the process and that objectives should never be reviewed, which is contrary to MBO principles.

Common Pitfalls:
Some learners mistakenly view MBO as a one time objective setting exercise, ignoring the ongoing review and adjustment cycles. Others may confuse MBO with rigid command and control structures that do not allow feedback. In reality, MBO requires both clear objectives and continuous review, including corrective actions as needed. Recognizing that any statement denying the role of corrective actions contradicts MBO will help you avoid such pitfalls on exam questions.

Final Answer:
The statement that is NOT true about MBO is "Corrective actions are not part of the process; once objectives are set, they should never be adjusted or reviewed."