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Question

Establishment of management by objectives presupposes ___________________.
  1. That limits of authority are not defined
  2. Unlimited freedom to operate in the assigned task
  3. That employees are provided with result expected
  4. Unlimited freedom to set golas

A
Unlimited freedom to operate in the assigned task
B
Unlimited freedom to set golas
C
That limits of authority are not defined
D
That employees are provided with result expected
Solution
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Management by objective is a practice which aims at increasing organizational performance through alignment of goal and subordinate objectives throughout the organization. It presupposes that all employees are provided with result expected and they agree to work on clearly defined quantitative or qualitative objectives.
Thus the correct answer is B.

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