MBO (Scenario) Kay Was Excited. She Had Just Returned from a Manager's

question 29

Multiple Choice

MBO (Scenario)
Kay was excited. She had just returned from a manager's retreat where MBO was discussed. MBO had never been used in her organization before, and Kay was enthusiastic about implementing it in her department. She received permission from her manager, the division head, who vaguely remembered learning about MBO in university several years earlier. Kay looked over the information she had received but was still confused about who was to choose the goals for the employees. However, she knew that once the goals were chosen they needed to be specific and have explicit time periods attached. Even though it would take a lot of work to implement the program, Kay was confident that MBO would prove to be very beneficial to the organization.
-However,Kay was also aware that a potential problem of MBO is that ________.

• A)it requires new goals to be set every few weeks
• B)employees may not be as committed to achieving their new goals
• C)it may not be as effective in dynamic environments
• D)it uses goals primarily to control employees

---

Definitions:

Credit Shelter Trust

A legal arrangement allowing a person to bequeath an amount under the estate tax exemption to beneficiaries other than their spouse, minimizing estate taxes.

Federal Income Tax

The tax levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Taxable Estate

The total value of an individual's estate that is subject to federal estate taxation upon their death.

Taxable Income

The portion of income, subject to taxes, calculated by deducting allowable deductions from gross income.