Goal-Setting Process (Scenario)Steve Walker, the head of Human Resources at Talladega Instruments, wants to revamp the goal-setting process in his organization. Over the last several years, employees’ goals have been the result of a simple top-down approach-goals set by top managers flow down through the organization and become subgoals for each organizational area. These goals are passed down to each succeeding level and guide individual employees as they work to achieve those assigned goals. However, it has recently been brought to Steve’s attention that several employees are frustrated because they are unable to meet their goals and are losing out on their annual bonuses.Which of the following statements, if true, would weaken the argument for the use of the management by objectives

approach in this situation?

A. Financial records show that Talladega’s annual bonus payouts have declined in the last 4 years.
B. Employees have a better understanding of the nature of the work than managers do.
C. Employees do not understand the functioning of the business and the concept of goal setting.
D. There is a substantial gap between the company’s stated and real goals.

ANSWER:

C