There are various ways to implement Management by Objectives (MBO). For instance, one way is for top management to tell the next level down what to do, and for the next level to tell the level below them what to do. In this method, the level below gets to ask questions for clarification but is not encouraged to ask "why" those objectives were chosen. They are just expected to comply. There exist conditions under which this is a good or even the best approach. What might those conditions be?

Another approach is for top management to provide objectives to the next level down and to encourage active dialogue about the best way to implement these objectives. This might even lead to a discussion about whether these are, in fact, the best objectives for them to pursue. This process is then repeated all the way down to the bottom of the organization. Like with the former approach, there are conditions under which this is a good, possibly the best approach. What might those conditions be?

Provide a summary of both approaches, followed by an assessment of the costs and benefits of each. Please conclude with an explanation as to why you prefer one method over the other.