Why Do Some People Dislike Management by Objectives

question 66

Multiple Choice

Why do some people dislike management by objectives?

• A) It is not possible for managers to periodically review an individual's performance to see whether he or she is meeting the objectives.
• B) Employees do not benefit from a system of rewards that is based on personality rather than on performance.
• C) Setting and monitoring the achievement of objectives can be time-consuming and requires a lot of paperwork.
• D) When employees are involved in the process of setting goals, it results in limited commitment toward achieving those goals.

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Definitions:

Trade or Business

An activity conducted for the purpose of earning income from selling goods or services, characterized by regularity and continuity.

Depreciation

The accounting process of allocating the cost of a tangible asset over its useful life, representing the decrease in value of the asset over time.

Section 1231

Refers to a tax provision in the United States that includes the tax treatment of gains and losses on the sale or exchange of real or depreciable property used in a trade or business and held for more than one year.

Ordinary Asset

An asset used in a business or trade which is subject to ordinary income tax rates rather than capital gains tax rates if sold or exchanged.