The Disadvantage of the Management by Objectives Approach Is That

question 59

Multiple Choice

The disadvantage of the management by objectives approach is that:

• A) it gives employees no scope to determine their specific goals.
• B) it works only when the job requires higher-level thinking.
• C) the manager's writing ability has an impact on the validity of this method.
• D) it hampers open and honest communication between employees and managers.
• E) it is not bound by a limited time period, leading to decreased motivation.

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Definitions:

Take-Over

The acquisition of control over a company, typically by purchasing a majority of its stock.

Employee Compensation

The total amount of financial and non-financial benefits provided to employees in exchange for their work.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Stockholders' Equity

The portion of a company's total value that is owned by its shareholders, represented by the company's assets minus its liabilities.