Management by objectives works best when the objectives of each organizational unit

are derived from
A. the social environment.
B. the objectives of a competitor.
C. the objectives of the next higher unit in the organization.
D. a functional or general manager.

i answered D

Right.

To determine the correct answer, let's break down the options:

A. the social environment: While the social environment can influence an organization's objectives, it may not be the primary source from which objectives for each organizational unit are derived.

B. the objectives of a competitor: The objectives of a competitor may be considered when developing strategies, but they may not directly serve as the basis for determining objectives for internal organizational units.

C. the objectives of the next higher unit in the organization: This option aligns with the concept of a hierarchical organization structure where objectives cascade down from higher-level units to lower-level units. This is commonly used in management by objectives (MBO) where objectives are determined at each level based on the objectives set at the next higher unit.

D. a functional or general manager: This option seems plausible as functional or general managers have the authority to set objectives for their respective units. However, it's important to consider that in MBO, objectives are meant to be aligned with the organization's overall goals, so they are often derived from the objectives of the next higher unit or the organization as a whole.

Therefore, the correct answer is C. the objectives of the next higher unit in the organization.