Management by Objectives and Balanced Scorecard

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Questions and Answers

What motivates individuals according to equity theory?

Expectations of high rewards

Need for feedback

Desire for social acceptance

A sense of fairness from comparisons (correct)

What is a key characteristic of 'entitleds' in equity theory?

They are highly sensitive to equity.

They expect high rewards with minimal input. (correct)

They avoid comparisons with others.

They provide equal input as output.

Which concept describes reinforcement provided after a specific number of times the correct behavior is demonstrated?

Continuous reinforcement

Fixed interval schedules

Fixed ratio schedules (correct)

Variable ratio schedules

How does feedback contribute to an individual's work experience?

Enhances performance by indicating effectiveness Signup and view all the answers

What is 'interactional justice' primarily concerned with?

The respect and dignity in interpersonal interactions Signup and view all the answers

What are hygiene factors associated with?

Conditions causing dissatisfaction in a job Signup and view all the answers

What does 'instrumentality' refer to in motivational theory?

The belief that performance is connected to rewards Signup and view all the answers

Which of the following best describes 'growth needs' in relation to ERG theory?

Correlates with esteem and self-actualization Signup and view all the answers

What does motivation primarily indicate about a person's efforts?

They are trying hard to accomplish a task. Signup and view all the answers

Which motivation theory is known for its support of three acquired needs based on life experiences?

Acquired Needs Theory Signup and view all the answers

In equity theory, what does the term 'inputs' refer to?

The contributions a person feels they are making. Signup and view all the answers

Which theory extends beyond just equity in rewards to consider fairness in a broader context?

Procedural and Interactional Justice Signup and view all the answers

Which of the following does not form part of the major influences on employee performance as identified in the motivation equation?

Salary Signup and view all the answers

Among the theories of motivation, which model emphasizes the importance of setting goals?

Goal Setting Theory Signup and view all the answers

What are outputs according to the process-based theories of motivation?

The rewards a person feels they receive from the situation. Signup and view all the answers

Which theory suggests that perceived fairness is a significant motivator among employees?

Equity Theory Signup and view all the answers

What is the primary purpose of job specialization?

To break tasks into simpler components for repetitive performance Signup and view all the answers

Which job-related technique allows workers more control over their tasks?

Job enrichment Signup and view all the answers

Which of the following is NOT one of the five core job dimensions in the job characteristics model?

Team cohesion Signup and view all the answers

How does job rotation benefit employees?

By relieving monotony and enhancing skill variety Signup and view all the answers

What is the effect of negative reinforcement in a workplace setting?

It increases the frequency of desired behaviors by removing negative consequences Signup and view all the answers

Which statement accurately describes motivation?

It's when individuals are driven to action to achieve goals Signup and view all the answers

What does Organizational Behavior Modification (OB Mod) involve?

A systematic application of reinforcement theory to change behaviors Signup and view all the answers

Which of the following is an example of a motivator that can enhance employee performance?

Increased responsibilities Signup and view all the answers

What is the primary focus of Management by Objectives (MBO)?

Focusing on achievable goals to enhance organizational performance Signup and view all the answers

Which of the following is NOT a characteristic of effective goals and objectives?

Base objectives on opinions Signup and view all the answers

Which step is typically included in the implementation of MBO?

Collaboratively setting individual-level goals aligned with corporate strategy Signup and view all the answers

What does the Balanced Scorecard framework aim to achieve?

To translate mission and vision into specific, quantifiable goals Signup and view all the answers

Which of the following represents a correct approach in MBO?

Periodically reviewing performance and revising goals Signup and view all the answers

What does the characteristic 'cascade goals into objectives' imply?

Organizational goals should lead to specific departmental and individual objectives Signup and view all the answers

Why is stakeholder consideration important when setting goals and objectives?

To enhance collaboration and address varying interests Signup and view all the answers

How should goals and objectives be evaluated effectively?

On the basis of factual data and performance metrics Signup and view all the answers

What is the primary goal of performance management systems?

To assist employees in achieving their goals Signup and view all the answers

Which of the following describes procedural justice?

The degree to which fair decision-making procedures are used Signup and view all the answers

What does positive reinforcement aim to achieve?

To increase the frequency of desired behaviors Signup and view all the answers

Which needs are described by Maslow’s theory in the context of physiological needs?

Air, food, and water Signup and view all the answers

What is the purpose of reinforcement schedules in reinforcement theory?

To impact the timing or delivery of reinforcement Signup and view all the answers

In equity theory, what is a referent?

The person or group used for comparison Signup and view all the answers

What does the concept of the triple bottom line (TBL) measure?

Economic, social, and environmental performance Signup and view all the answers

SMART goals are designed to be which of the following?

Specific, measurable, achievable, realistic, and timely Signup and view all the answers

Study Notes

Management by Objectives (MBO)

A systematic approach to focus on achievable goals
Aligns subordinate objectives with overall leadership goals
Involves setting goals at the corporate, team/department, and individual levels
Develops action plans and periodically reviews performance

The Balanced Scorecard

A framework that translates mission, vision, and strategy into quantifiable goals and objectives
Monitors performance against these objectives

Characteristics of Effective Goals and Objectives

Less is More: Focus on a few key goals and objectives
Measures Tied to Drivers: Measure the factors that directly influence performance
Don't Just Measure the Past: Look at current and future performance indicators
Stakeholder Consideration: Ensure goals align with all relevant stakeholders
Goal Cascading: Break down goals into smaller, more manageable objectives
Simplicity: Make goals and objectives easy to understand and follow
Adaptability: Be prepared to adjust goals as needed
Fact-Based Objectives: Use data and evidence to set realistic objectives

Performance Evaluation

Performance evaluation is a process to provide constructive feedback on employee performance
Motivation plays a crucial role in employee performance

Motivation Theories

Need-Based Theories: Focus on the needs that motivate employees
- Maslow's Hierarchy of Needs: Individuals must satisfy basic needs before higher needs become motivators
- ERG Theory: Focuses on three needs: Existence, Relatedness, and Growth
- Two-Factor Theory: Separates factors that cause dissatisfaction (hygiene factors) from factors that lead to satisfaction (motivators)
- Acquired Needs Theory: Individuals develop needs for achievement, affiliation, and power through life experiences
Process-Based Theories: Focus on how behavior is influenced by cognitive processes
- Equity Theory: Individuals compare their inputs and outputs to those of others to determine fairness
- Fairness beyond Equity: Looks at procedural and interactional justice in addition to outcome fairness
- Expectancy Theory: Motivation is influenced by the belief that effort will lead to performance, performance will lead to rewards, and rewards are valued
- Reinforcement Theory: Behavior is a function of its consequences
  - Positive reinforcement: Rewarding desired behavior
  - Negative reinforcement: Removing negative consequences for desired behavior
  - Extinction: Ignoring undesired behavior
  - Punishment: Imposing negative consequences for undesired behavior
- Job Characteristics Model: Identifies five core job dimensions that influence employee motivation
- Goal Setting Theory: Clear and specific goals lead to higher motivation and performance

Key Terms

Goals: Define what an organization is trying to accomplish
Objectives: Specific, measurable, time-based actions that support goals
Motivation: The process that moves individuals to action
SMART Goals: Specific, Measurable, Achievable, Realistic, Time-bound
Performance Management Systems: Continuous process of improvement for employees
Performance Evaluation: A constructive process to provide feedback on performance
Reinforcement Schedules: The timing and frequency of reinforcement impacts behavior
Triple Bottom Line (TBL): Measures economic, social, and environmental performance

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Description

Test your knowledge on Management by Objectives (MBO) and the Balanced Scorecard framework. This quiz covers goal-setting strategies, characteristics of effective objectives, and how performance is monitored and aligned across various levels of an organization. Enhance your understanding of these management concepts and their practical applications.