Final answer:
Sam and Kim's action of setting tangible performance goals is true to the principle of MBO, as it involves measurable, motivational, achievable, and appropriate goals, which are essential elements of the MBO process.
Step-by-step explanation:
The statement that Sam and his assistant Kim recently sat down to collectively set tangible performance goals for her is a key aspect of MBO is true. Management by Objectives (MBO) involves the setting of clear, measurable, and feasible goals that are agreed upon by both management and employees. This process ensures that the objectives are tangible and that there is a clear plan in place for achieving them. Setting goals in MBO requires that the goals be measurable and motivational, meaning there must be established criteria to track progress. Additionally, goals must be achievable and appropriate, ensuring that they are realistic and align with both the employee's capabilities and the company's overall strategy.