Management Finance - Part 1

Which of the following is a major limitation of relying exclusively on quantitative performance targets?

Type: MCQ • Marks: 1
Which of the following is a major limitation of relying exclusively on quantitative performance targets?
Options
A. They can never be measured
B. Employees may focus on the indicator while neglecting broader objectives
C. They always improve organisational performance
D. They eliminate managerial discretion
Explanation
This problem is associated with Goodhart's Law and goal displacement.
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UPSC Principal & Vice Principal Management Finance Administration

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