Janet,a Production Manager,thinks Management by Objectives Is a Good Way

question 23

Multiple Choice

Janet,a production manager,thinks management by objectives is a good way to measure performance results of employees in an organization.However,her colleague,Ferdinand,disagrees with her.Whose argument is correct and why?

• A) Ferdinand is right because the goals in this strategy are subjective.
• B) Janet is right because managers and employees have to set their own goals independently.
• C) Ferdinand is right because management by objectives can have negative consequences on productivity.
• D) Janet is right because results-oriented performance measurement is relatively easy to link to the organization's goals.
• E) Ferdinand is right because management by objectives focuses only on individual goals.

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Definitions:

Income Tax Rate

The fraction of earnings subject to taxation for either individuals or corporations.

Current Income Tax Liability

The amount of income tax that a company is obligated to pay to tax authorities within the current year.

Deferred Tax Asset

An accounting term that refers to a situation where a business has paid more taxes or estimates that it will pay more taxes than it will owe.

Warranty Expense

Costs a company incurs due to repairing or replacing products under warranty.