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Chapter 12
Goal Setting for
Effective
Organizations
TEST QUESTIONS
True/False Questions
1. The goal-setting process in an OD program typically takes place on an individual
basis before the work team is involved in goal setting.
2. Some OD practitioners are reluctant to include management by objectives as an OD
intervention.
3. Goal setting is both a process that is used early in the OD program and as an
intervention activity.
4. Goal setting is usually used at the team level and not at the individual level.
5. Deadlines and budgets typically should not be mentioned or defined in any goals
formulated by an organization.
6. Research has found that the assignment of an easy goal results in no better
performance than no goal at all. The conclusion: if the goal is an easy one to
accomplish, don’t bother to set the goal in the first place.
7. Goals that have been shown to be effective are those that are specific, expressed in
quantitative terms, include time frames, standards, quotas, monetary amounts, and the
8. A manager who is in charge of a department that is in a constant state of change may
find that setting specific goals leads to rigid behavior and neglecting new
opportunities. In this case, the goals should be general.
9. Goals should be difficult to achieve but not too hard so that people will at least view
the goal as attainable.
10. Individuals responsible for accomplishing a goal should not take part in setting it. If
they do participate, they will likely set easy goals or the goals will enhance the career
of the participants.
11. The feedback to an individual regarding the results of their performance in
accomplishing a goal should not occur immediately after the work activity in order to
allow time for the individual to evaluate their own performance.
12. Relevant and specific feedback to the individual is important for goal setting to be
successful.
13. Goal setting is more likely to be successful among individuals who are in
management positions than among those positions requiring minimum skills.
14. Goal setting is just as successful regardless of an individual’s education and skills.
This means that goal setting can be just as successful for the fry cook at a fast-food
restaurant as the president of the company.
15. The success of goal setting is not influenced by differences in individuals such as
self-esteem.
16. Probably only external rewards or punishment will be successful in building
commitment for individuals who have a low need for achievement.
17. When people are engaged in interdependent work, it is important that individual
goals are set such that the individuals are not placed in competitive situations with
one another.
18. In goal-setting programs, it is relatively unimportant to their success that
management support the goal programs. What is important is that the individuals
involved with implementing the goals be supportive of the goals.
19. The most effective and realistic way to establish goals is to base them on past
performance.
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20. Goal commitment can best be achieved by building in competition between
employees, especially in situations where employees are dependent upon one
another. An example of effective competition includes sponsoring a contest for the
person who is the first to reach the goal.
21. Monetary incentives usually have no place in goal-setting programs and there is no
evidence that money can improve performance.
22. Goals should be general, intangible, and compatible with goals formulated at higher
levels of the organization.
23. Management by objectives is aimed at the integration of individual and
organizational goals.
24. Management by objectives is involved in goal setting on both an interpersonal and
organizational basis.
25. Management by objectives is primarily a method for management to communicate to
employees what their goals are to be.
26. Management by objectives is concerned more with personal goals of individuals than
with organization goals.
27. Management by objectives requires the manager to use persuasive intervention skills
in order to convince the employee to accept the larger organization goals.
28. An advantage of using management by objectives to set goals is that the steps in the
process are independent of one another.
29. Management by objectives is a goal-setting program that can be part of an OD
program or it may be set up without the presence of an OD program.
30. MBO interactions between a manager and a subordinate should focus on goals and
save counseling or coaching interactions for a separate meeting.
31. A criticism of management by objectives is that it usually requires large quantities of
time, money, and effort for successful adaptation.
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32. Research evidence suggests that detail and specific documentation in an MBO
program leads to its improved effectiveness.
Multiple-Choice Questions
33. The goal-setting process in an OD program _____.
a. typically does not begin until after intergroup development has taken
place
b. is the last intervention activity to take place in the program
c. is usually used at the team and not individual level
d. is an integral part of the program and typically occurs early in the
program
e. answers c and d
34. Goal setting occurs at the _____ level.
a. individual
b. departmental
c. team
d. organizational
e. all of the above
35. Goal setting as part of an OD programs is _____.
a. primarily limited to management by objectives programs
b. an integral part of the OD program
c. restricted to team building and intergroup development
d. a process always formally recognized
e. implemented after the diagnostic stage
36. In order for goals to produce better performance, they should _____.
a. be both specific and difficult to achieve
b. be specific but easy to achieve so that employees do not become
discouraged
c. be general in order to avoid specifics but be difficult to achieve in
order to be challenging
d. be general and easy to achieve so people can easily achieve the goal
and will not become discouraged
e. be “do your best” type of goals rather than be difficult
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37. Recent research into goal setting suggests that goals should be expressed in general
terms _____.
a. when those involved are not likely to be able to accomplish the goal
b. in most situations
c. when the task is complex and there are many good strategies
d. only when those involved do not want to participate in the goal-setting
program
e. none of the above
38. Which of the following is true of goal setting?
a. Goals should be specific.
b. Goals should be impossible to attain to keep a person working at
his/her peak.
c. Goals should be broad based in order to be compatible with the OD
program.
d. Goals should be general so that many situations can be covered by the
goals.
e. answers c and d
39. Which one of the following is included in goal-setting theory?
a. More difficult goals produce better performance.
b. Feedback and goals improve performance.
c. Support of management is critical.
d. Goal setting improves motivation.
e. all of the above
40. The problem of goals becoming too difficult is that _____.
a. the goal may not be accepted by people
b. individuals involved may become discouraged
c. the goal may be abandoned
d. all of the above
e. answers a and c
41. Participation by those responsible for attaining the goal is important because
_____. a. they will likely set harder goals
b. they will probably not quit or transfer to another department
c. their managers don’t have time to set individual employee goals
d. commitment and job satisfaction will be higher than when the goals are
imposed
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42. If goals are perceived as too difficult or impossible to attain _____.
a. performance will improve as the goals will challenge a person
b. a person will work harder
c. performance may actually decrease
d. motivation and morale will increase
e. answers a, b, and d
43. When implementing a goal-setting program _____.
a. relevant and specific feedback is important
b. a person is more likely to accept a program based on easy goals
c. goals actually decrease a person’s motivation
d. a period of time is allotted for the goal to be accomplished where the
manager leaves the employee alone and does not get involved
e. none of the above
44. External rewards, such as money or punishment, will be successful in building
commitment _____.
a. in no circumstances
b. when the individual earns a minimum wage
c. in individuals who have high self-esteem
d. in individuals who have a low need for achievement
e. answers b, c, and d
45. When people are engaged in interdependent work, it is important that individual
goals are set such that the goals _____.
a. facilitate the attainment of the team goal
b. compete with one another in order to build in excitement
c. are general and moderately easy
d. are determined by management in order to reduce conflict among
individuals
e. answers a and b
46. An approach for setting goals is _____.
a. by joint participation between the employee and the supervisor
b. to base them on past performance
c. to use time and motion studies for goals involving repetitive and
standardized tasks
d. all of the above
e. answers a and b
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47. Goal commitment can best be achieved by _____.
a. building in competition between employees such as sponsoring a
contest for the person who is the first to reach the goal
b. trust in upper management and an effective reward system
c. supervisors closely monitoring employees’ progress
d. making sure goals are set slightly higher than employees will be
capable of achieving
e. all of the above
48. Goal-setting programs are more likely to be successful when _____.
a. an individual is held accountable for not attaining the goals
b. support by managers is forthcoming
c. higher levels of educated individuals are involved
d. when goal setting is restricted to middle- and higher-management
levels
e. answers c and d
49. Which of the following should more likely be avoided in a goal-setting program?
a. monetary rewards
b. involving lower-level employees
c. feedback
d. competition
e. answers a, b, and d
50. Research studies on goal-setting programs _____.
a. have shown some negative results and very little positive results
b. are not available as little research has been conducted to date
c. are limited to personal stories of managers
d. have shown positive results for both individuals and organizations
e. have shown that “do your best” goals led to better performance than
specific and challenging goals.
51. The process aimed at the integration of individual and organization goals is _____.
a. information sharing (IS)
b. management by objectives
c. information collecting
d. climate setting
e. none of the above
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52. The two underlying purposes of implementing management by objectives in an
organization is to _____.
a. evaluate and control employees’ goals
b. administer organization goals and to reward performance
c. clarify organization goals at all levels and to gain increased motivation
among employees
d. serve as a check and balance on employees and to build support for the
OD program
e. reward employees who meet their objectives and reprimand employees
who do not
53. The management-by-objectives process usually occurs between _____.
a. top management and the board of directors
b. workers and top management
c. managers and their subordinates
d. middle management and line supervisors
e. two department heads on the same level meeting together and
establishing their objectives for a specific time frame
54. The management-by-objectives approach _____.
a. is proactive
b. can be used at all levels of the organization
c. emphasizes goal setting
d. all of the above
e. none of the above
55. The objective of a management-by-objectives program is to _____.
a. clarify organizational goals at all levels
b. use learning laboratories to analyze managers
c. increase motivation
d. all of the above
e. answers a and c
56. The management-by-objectives process usually includes _____.
a. managers effectively communicating to subordinates the specific
objectives for a time period
b. managers documenting the problems a subordinate has in fulfilling
objectives
c. top management setting up measures of organizational performance
d. managers designing situations for work teams to compete with one
another
e. answers a and b
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57. How are objectives set between managers and subordinates under management by
objectives?
a. separately
b. mutually
c. through confrontation
d. through competition
e. none of the above
58. For MBO to be used as an OD intervention, it should include _____.
a. a team approach to setting and reviewing targets
b. shared trust between the subordinate and manager
c. a real concern for personal career goals as well as for organization
goals
d. all of the above
e. answers b and c
59. Although steps in the MBO process may vary among organizations and OD
practitioners, the goals are similar, including _____.
a. increased levels of performance
b. decreased control at the upper levels
c. increased understanding at all levels
d. all of the above
e. answers a and c
60. A criticism of management by objectives is that it _____.
a. is questionable if joint goal-setting among unequals, such as a manager
and subordinate, is possible
b. is often difficult to state goals explicitly and quantifiable for all facets
of a job
c. requires large quantities of time, money, and effort to be successful
d. all of the above
61. Research evidence suggests that _____ leads to improved effectiveness of MBO
programs.
a. fewer interteam meetings
b. less feedback and paperwork
c. fewer objectives and less intrusion by upper management
d. participation of subordinates
e. more goal-setting meetings
Essay Questions
62. Why is goal setting an integral part of an OD program even though it may not be
formally recognized?
OD programs rely heavily upon the goal-setting process. OD by its definition is
63. How can resistance to goal setting be overcome?
64. What are the typical results of goal setting?
65. Explain Douglas McGregor’s approach to MBO.
66. How does goal setting/MBO fit into an OD program?