The idea of management by objectives (MBO) that was introduced by Peter Drucker in 1954 has become important to which motivational theory of today?Multiple Choiceequity theoryTheory Ygoal-setting theoryTheory Z

Sure, let's break down the question step by step:

1. Identify the concept: The question is about "management by objectives (MBO)" introduced by Peter Drucker in 1954.

2. Understand MBO: MBO is a management strategy where managers and employees work together to set, record, and monitor goals for a specific period. The idea is to align individual objectives with organizational goals.

3. Link to motivational theories: The question asks which modern motivational theory is closely related to the concept of MBO.

4. Review the options:

   • Equity Theory: This theory focuses on fairness and how individuals perceive their input-to-output ratio compared to others.
   • Theory Y: Proposed by Douglas McGregor, this theory suggests that employees are self-motivated and thrive on responsibility.
   • Goal-Setting Theory: This theory, developed by Edwin Locke and Gary Latham, emphasizes the importance of setting specific and challenging goals to motivate employees.
   • Theory Z: Developed by William Ouchi, this theory combines American and Japanese management practices, focusing on long-term employment, collective decision-making, and individual responsibility.

5. Match MBO with the appropriate theory: MBO involves setting specific, measurable goals and monitoring progress, which aligns closely with the principles of Goal-Setting Theory.

6. Conclusion: The motivational theory that has become important due to the idea of management by objectives (MBO) is Goal-Setting Theory.

So, the correct answer is:

• Goal-Setting Theory