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ACCA Applied Knowledge · Business and Technology · Personal effectiveness

An employee's objective reads: 'Reduce the department's expense claim processing errors from 8% to 3% by 30 June, within the existing team and budget.' A reviewer says it lacks one SMART element, namely relevance to wider goals. Which addition would best address this?

Linking the objective to the finance function's aim of more accurate management reporting best addresses relevance, because relevance means the personal goal contributes to wider organisational objectives. The other changes affect timing, measurability or reward rather than alignment.

  1. AAdd the sentence 'This supports the finance function's target of improving accuracy of management reporting'Correct
  2. BExtend the deadline to 31 December
  3. CChange 3% to 'a lower level of errors'
  4. DAdd a note that the employee will be paid a bonus

Explanation

Relevance means the objective is linked to the organisation's or team's wider aims. Linking it to the accuracy of management reporting does this. Extending the deadline affects time-bound, vaguer wording weakens measurability, and a bonus is a reward, not relevance.

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