Which control standard is stated most effectively?
Multiple Choice
Cut the number of finished product rejects.
Empower employees to make more decisions next year.
Praise employees more often this month.
Increase sales of our top-end product from 2,000 in the first quarter to 3,000 in the first quarter of next year.
The Correct Answer and Explanation is:
Correct Answer:
D. Increase sales of our top-end product from 2,000 in the first quarter to 3,000 in the first quarter of next year.
Explanation (300+ words):
When evaluating control standards in management or business contexts, effectiveness is judged by how well a standard meets the SMART criteria: Specific, Measurable, Achievable, Relevant, and Time-bound. These criteria ensure that goals are clearly defined, progress can be tracked, and there is a clear time frame for achieving the goal.
Let’s evaluate each option using the SMART criteria:
A. “Cut the number of finished product rejects.”
- Specific: Yes, it refers to reducing product rejects.
- Measurable: No exact number is given.
- Achievable: Possibly, but undefined.
- Relevant: Likely relevant to quality control.
- Time-bound: No deadline is mentioned.
This lacks specificity in measurement and timing.
B. “Empower employees to make more decisions next year.”
- Specific: Vague—what types of decisions?
- Measurable: “More decisions” is not quantified.
- Achievable: Possibly, but vague.
- Relevant: Potentially relevant to management goals.
- Time-bound: Somewhat—mentions “next year.”
However, it’s not specific or measurable enough.
C. “Praise employees more often this month.”
- Specific: Somewhat—it refers to praising employees.
- Measurable: “More often” is subjective.
- Achievable: Yes.
- Relevant: Yes—relates to morale.
- Time-bound: Yes—“this month.”
Still, it’s too vague and not measurable.
D. “Increase sales of our top-end product from 2,000 in the first quarter to 3,000 in the first quarter of next year.”
- Specific: Yes—mentions the exact product and goal.
- Measurable: Yes—from 2,000 to 3,000.
- Achievable: Assuming market demand allows, yes.
- Relevant: Clearly related to business success.
- Time-bound: Yes—“by the first quarter of next year.”
This is the most effective control standard because it is clearly quantifiable, action-oriented, and time-bound, allowing managers to track progress and adjust strategies effectively. Control standards like this help ensure accountability and facilitate performance