Objectives

Correct answer: A. The measurement standard is unclear

Without a defined measure, such as output per employee, the company cannot clearly assess whether productivity has increased. The objective therefore lacks a clear measurement standard.

Correct answer: A. The company wants to provide high-end premium service but gives the team a target focused only on selling at the lowest price.

A target focused only on the lowest price does not support the stated aim of providing high-end premium service. The other targets directly support their companies' stated objectives.

Correct answer: A. Customer retention

Customer churn measures how many customers stop doing business with the company. Reducing churn means retaining more customers, so the objective is directly related to customer retention.

Correct answer: A. Measurability and being time-bound

The target gives measurable rates—12% and 7%—and sets a six-month deadline. This makes the objective both measurable and time-bound.

Correct answer: B. It has no clear measurable criterion

Without an indicator, the department cannot clearly assess whether the brand image has improved. The objective therefore lacks a clear measurable criterion.

Correct answer: C. Because quantity and quality need balance

The direct answer is option C: quantity and quality need balance. Production wants more units, while the quality department wants fewer defects. Both are valid objectives, but pursuing only one can damage the other. Step by step: increasing units may create pressure to work faster; excessive speed may increase defects; reducing defects may require inspection, training, or process improvement; the organisation therefore needs both adequate output and acceptable quality. Option A is wrong because production and quality are connected: defective units affect customers, cost, reputation, and sales. Option B is wrong because a target is not automatically a rule. Option C is correct because balanced objectives support efficient and sustainable performance. Option D is wrong because different departments can have different objectives, and both can genuinely be objectives. Exam cue: quantity asks how much is produced; quality asks how well it is produced.

Correct answer: D. Raise the average score from 64 out of 100 to 72 in the next academic session

Option D specifies a measurable result—an increase in average marks from 64 to 72 out of 100—and a deadline, the next academic session. The other options do not state a specific measurable target.

Correct answer: A. Realism

A realistic objective should be achievable with the organisation’s available capacity and resources. A target far beyond that capacity is not realistic.

Correct answer: B. The objectives lack balance and alignment

A cost-reduction target that leads to more complaints may undermine service quality and the company’s broader objective. Departmental objectives should be balanced and aligned with overall organisational objectives.

Correct answer: C. Decide the product positioning and channel direction to enter the premium market

C is a strategy because it sets a broad direction for how the company will enter the premium market. The other choices state measurable results to achieve, so they are objectives.

Correct answer: A. Financial performance

Operating profit is a financial measure. Therefore, a target to increase it relates to financial performance.

Correct answer: C. It is not time-bound

The number can make the target measurable, but without a deadline it is not time-bound. A clear objective should specify when the result is to be achieved.

Correct answer: B. Multiplicity of objectives

The organisation has targets in several areas, including profit, service, employee development and innovation. This illustrates the multiplicity of organisational objectives.

Correct answer: C. An objective states the expected result, while a policy guides decision-making

An objective states what the organisation wants to achieve. A policy provides general guidance for making decisions while pursuing that objective.

Correct answer: D. Human resources

Absenteeism concerns employees and their attendance. A target to reduce it is therefore a human-resource objective.

Correct answer: A. Accountability will be weak

When no person or department is assigned responsibility, it is harder to determine who must act and answer for the result. Accountability is therefore weakened.

Correct answer: B. Check the invoice first, obtain approval next, and then make the payment

B gives an ordered set of steps for completing a payment, which is a procedure. The other choices state results to achieve and are objectives.

Correct answer: C. Increase daily active users from 45,000 to 60,000 in three months

C gives a specific, measurable engagement metric and a deadline: daily active users are to rise from 45,000 to 60,000 within three months. The other options are vague or describe an action rather than a measurable result.

Correct answer: A. Common direction and coordination

When employees understand a shared objective, they can align their efforts and coordinate their work. Unclear communication makes that common direction and coordination harder to achieve.

Correct answer: A. Service efficiency

The objective concerns how reliably and efficiently the firm delivers its service. Reducing the late-delivery rate from 11% to 5% gives a measurable service-efficiency target for the next quarter.

Correct answer: A. Pressure to make false promises to achieve a sales target

A clear sales target can still create an ethical risk if employees are pressured to make false promises to meet it. The pressure does not justify misleading customers.

Correct answer: B. Human resource process efficiency

Onboarding is a process for bringing new employees into the organisation. Reducing the time it takes is therefore linked to the efficiency of a human resource process.

Correct answer: A. Safety may be overlooked

When only output quantity is emphasised, employees may prioritise production over safe working practices. Including safety standards helps balance the objective.

Correct answer: A. Increase the market share of the whole organisation; a salesperson making 40 customer calls per week

Increasing the market share of the whole organisation is a corporate objective because it applies to the organisation as a whole. A salesperson’s weekly call target applies to one individual, so it is an individual objective.

Correct answer: B. Raise the repeat-purchase rate from 38% to 52% in six months

The repeat-purchase rate can be measured, and the option specifies both a starting point and a target within six months. It therefore gives a concrete indicator for assessing customer retention.