The questions which follow provide a basic knowledge test of selected concepts covered in this learning pathway:
Setting goals, objectives and measures.
The questions published at the end of each learning pathway are re-used for the knowledge test for learners interested in earning a digital badge or certificate of participation for the Planning and Managing Organisations (PMAN103) micro-course. Please consult the Certify participation page for more information.
Indicate whether the following statements are true or false:
- The degree to which a goal is specific is arguably the most important part of establishing or evaluating a goal.
- True
- False
- No. The less specific a goal, the more difficult it is to measure how long it may take or even how to measure success.
- Goals should be very precise as they are to serve as main rallying points so that managers may work more efficiently
- True
- No. Goals are usually a collection of broad, related programs. They reflect major actions of the organization, and provide rallying points for managers.
- False
- Correct. Goals are usually a collection of broad, related programs.
- If goals and objectives are adequately addressed in the planning component of the P-O-L-C framework, there is no need to address them in the organizing, leading or controlling components.
- True
- No. If goals and objectives are to be achieved and actually improve the competitive position of the firm, then the organizing, leading, and controlling stages must address goals and objectives as well.
- False
- Correct. The organizing, leading and controlling components must address goals and objectives as well.
- Employee reward systems, such as salaries and bonuses, can be based on the goals and objectives set within a specific department.
- True
- Correct. Compensation may be based on the employee meeting set objectives.
- False
- No. In a business with several divisions, compensation and promotion are tied to performance within a specific division in addition to overall company performance.
Multiple choice questions
- Which THREE of the following statements about the characteristics of objectives are correct? Select all that apply– there are three correct answers)
- Objectives should be clear and concise.
- Yes. They should leave no room for doubt.
- Objectives should specify a date of completion.
- Yes. A key element in evaluating success is its timeliness.
- Objectives should reflect the major plans and actions of the organization.
- Incorrect. This is a characteristic of a goal which has a much broader in scope than an objective.
- Objectives should contain ‘action’ verbs.
- Yes. Objectives give a clear idea of what a person should be able to do by the end of a specified time.
- Which ONE of the following is the meaning of the letters in the acronym S.M.A.R.T. which describe the characteristics of goals and objectives? (There is one correct answer)
- Smart, Measurable, Actionable, Reliable, Thorough
- Incorrect. Only Measurable and Actionable are correct.
- Specific, Measurable, Actionable, Relevant and Time-bound
- Specific, Marketable, Accurate, Reliable, Thorough
- Incorrect. Only specific is correct.
- Smart, Marketable, Actionable, Relevant, Time-bound
- Incorrect. Only Actionable, Relevant, Time-bound are correct.
- Which THREE of the following statements describe some of the FAILINGS of organizations with respect to financial goals and objectives? (Select all that apply – there are three correct answers)
- Financial goals and objectives give organizations a framework that management uses to make financial decisions.
- Incorrect. This is not a failing.
- Financial outcomes are often short term in nature and omit key factors that might be important to the long-term viability of the organization.
- Financial goals and objectives may cover more than short-term financial metrics that are not tied to strategy, vision and mission.
- Financial measures may let an organization know about its past, but may not be a good predictor of where it is going.
- “Reduce customer average wait times from 8 minutes to 5 minutes within the next 12 months” is an example of which ONE of the following? (Select the one correct answer)
- Goal
- Incorrect. This is specific with a stated time frame in the short term for completion.
- Objective
- Yes. This is specific with a stated time frame for completion.
- Measure
- Incorrect. A measure only focuses on the specific metric(s) to be used to evaluate progress.
- Performance
- Incorrect. This is specific with a stated time frame in the short term for completion.
