CITM practice question 4 of 10

On behalf of senior management, the Human Resource management department instructs all unit managers to perform appraisal meetings using SMART conditions. Which method is expected to be followed?

Full set: 50 questions
Answer options
A: Management By Objectives Correct answer
B: Graphic rating scales
C: Ranking
D: Performance ranking method
Correct Answer:
A. Management By Objectives
Explanation

The SMART framework, an acronym for Specific, Measurable, Achievable, Relevant, and Time-bound, is a foundational technique for setting clear and trackable goals. Management By Objectives (MBO) is a performance management model where managers and employees collaboratively set objectives for a specific period. The success of the MBO process is critically dependent on these objectives adhering to SMART criteria to ensure they are unambiguous and their achievement can be objectively verified. Therefore, an instruction to use SMART conditions for appraisals directly points to the implementation of the MBO method.

Why Incorrect

B. Graphic rating scales: This method evaluates employees based on a predefined set of traits or behaviors using a scale, not on the achievement of specific, time-bound objectives.
C. Ranking: This is a comparative method that ranks employees against their peers and does not involve setting or evaluating individual SMART goals.
D. Performance ranking method: This is synonymous with the ranking method; it focuses on relative employee comparison rather than achievement against absolute, pre-set objectives.

References

1. Doran, G. T. (1981). There's a S.M.A.R.T. way to write management's goals and objectives. Management Review, 70(11), 35–36. This seminal article introduces the SMART acronym as a framework for writing effective management objectives.

2. Rodgers, R., & Hunter, J. E. (1991). Impact of management by objectives on organizational productivity. Journal of Applied Psychology, 76(2), 322–336. This meta-analysis highlights that the core of MBO's effectiveness lies in setting specific and challenging goals, principles which are encapsulated by the SMART framework. (See abstract and introduction, p. 322). DOI: https://doi.org/10.1037/0021-9010.76.2.322

3. University of California, Berkeley. (n.d.). SMART Goals. People & Culture. Retrieved from https://hr.berkeley.edu/hr-network/central-guide-managing-hr/managing-hr/managing-successfully/performance-management/smart-goals. This official university resource explicitly details the SMART criteria as a primary tool for effective performance management and goal setting, which is the central mechanism of MBO.

Scroll to Top