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Advantages and Disadvantages of Management By Objectives

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Everything you need to know about the advantages and disadvantages of management by objectives.

MBO is not a panacea, a cure for all organisational problems. Quite often, many organisations look at MBO as an instant solution to their problems.

They fail to recognize that MBO demands careful planning and implementation to be successful.

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MBO calls for regulating the entire process of managing in terms of meaningful specific and variable at different levels of management.

MBO is a comprehensive management planning and control technique. It affects the entire organisational structure, culture and style. MBO moulds planning, organising, directing and controlling in a number of ways. It stimulates meaningful action for better performance and higher accomplishment.

Some of the advantages of management by objectives are:-

1. Better Planning 2. Better Organisation 3. Self-Control 4. Higher Productivity 5. Better Appraisal of Performance 6. Executive Development 7. Improvement of Managing

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8. Clarity of Organisational Roles and Structures 9. Encouragement of Personal Commitment 10. Development of Effective Controls 11. Facilitate Coordination of Efforts.

Some of the disadvantages of management by objectives are:-

1. Problems in Joint Objective Setting among Unequal’s 2. Problems of MBO Being Effective at the Lowest Level 3. It is Difficult to Implement in a Situation of Change 4. Resistance to Adopt MBO Technique 5. Poor Planning

6. Lack of Training 7. Limited Application 8. Inflexibility 9. Expensive Process 10. Inadequate Commitment from Top Management

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11. Goal Setters not Given Any Orientation 12. Setting Goals is a Complex Process 13. Emphasis on Short-Term Goals 14. problem of Status and Authority 15. Limited Time Horizon and a Few Others.


Management By Objectives: Advantages and Disadvantages

Management By Objectives – Advantages and Disadvantages

Advantages of MBO:

The advantages accruing from MBO in terms of the specific advantages to the subordinate, the superior and the organisation:

1. Advantages to Subordinates:

Include greater role clarity, measurement of performance and increased job satisfaction. When specific objectives have been agreed upon, the subordinate knows exactly what he has to achieve and can plan his various activities towards this end. Role and goal clarity ensure that there is no wastage of scarce organisational resources, on the one hand and single minded dedication to achievement of objectives on the other.

MBO implies regular feedback and measurement of performance against objectives. This serves as a great motivating factor for people to put in their best effort to achieve the objectives. It also helps to weed out the non-performer and identify the real contributors.

Clear, specific objectives and unbiased feedback about performance contribute to increased job satisfaction as compared to a situation where a person does not know what is expected of him and how, if at all, his performance will be judged. Job satisfaction emanates from the feelings of having done a job well to the best of your capability as well as public recognition and approval for it.

The former is Possible only when there are specific objectives while the latter can occur only if there is a system of review and reward. A worker or manager who derives satisfaction from his job will work harder in order to improve his performance while a dissatisfied, discontented manager will make a negative contribution. Thus, MBO can serve to bring about a change and put people on the self-propelling cycle of role clarity, increased job satisfaction and increased productivity.

2. Advantages to Superiors:

The benefits accruing to the subordinate will, of course, also accrue to the superiors. But besides these, the other specific benefits for superiors are that MBO motivates subordinates, strengthens superior-subordinate relationship, and provides an objective appraisal method. MBO is based on the concept of participation and this leads to greater motivation.

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Setting objectives implies that both the superior and the subordinate have to sit across the table and openly discuss their respective roles, work, obstacles and competencies. Such candid discussion always leads to increased mutual trust and confidence in each other and provides an enduring bond to the relationship. One of the biggest advantages of MBO is that it provides an objective basis for reviewing performance on the basis of achievements rather than personality traits.

Reviewing a person on the basis of his personality not only puts him on the defensive but serves no purpose from the organisation’s point of view. The only thing that matters is results. People are retained by organisations to produce results and not because they are sociable, soft spoken, introverted or possess any other such personality characteristic which has no bearing on their competence or capability.

3. Advantages to the Organisation:

MBO focuses on managerial effectiveness as a central value in the entire organisation. And this emphasis permeates down to the lowest level, influencing each manager and worker. This shows up in all the decisions which each manager makes and the overall performance of the organisation is improved. Secondly, MBO with its focus on objectives improves concentration and coordination of managerial effort. There is maximum utilization of resources and conflicting pulls in opposite directions are avoided.

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Thirdly, the periodic review in MBO helps identify advancement potential of workers and managers. It also helps in identifying workers who are underutilized or not making the full contribution. Lastly, MBO creates many centers of accountability as against one centralized accountability point.

It is not only the managing director or proprietor who is accountable for producing the desired results but each manager is responsible for achieving the agreed-upon objectives. Thus, MBO leads to greater decentralization in terms of setting and achieving objectives.

The Other Benefits of MBO are:

1. Improvement through result-oriented planning.

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2. It provides for objectives and accountability for performance.

3. It encourages participative management.

4. It helps in job enrichment.

5. It provides for a good feedback system.

Disadvantages of MBO:

MBO is not a panacea, a cure for all organisational problems. Quite often, many organisations look at MBO as an instant solution to their problems. They fail to recognize that MBO demands careful planning and implementation to be successful.

In practical implementation the following disadvantages of MBO are encountered:

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1. Problems in Joint Objective Setting among Unequal’s:

MBO implies a process of point or consultative objective setting between the superior and the subordinate. But this very relationship, based upon status, may prove to be a hindrance in free, frank and open communication between the two, and stall the process of setting goals in an objective manner;

2. Problems of MBO Being Effective at the Lowest Level:

Theoretically, MBO is supposed to percolate throughout the organisation right down to the lowest level since the manager as well as the worker at each level have set their own agreed upon objectives. However, in reality, the workers or managers at the lower levels often do not have the full freedom to set their own objectives. This is because MBO operates from top to down, starting with the corporate objectives.

Thus, the process of objective setting implies that the objectives at the lower level have already been locked in and managers down the line have to match their own objectives with those of the level above them only. If the process of objective setting is reversed to overcome this limitation, and objectives are first set at the lowest level, it would mean that the entire organisation is being guided by people who have less experience, less education, less knowledge and awareness; and

3. It is Difficult to Implement in a Situation of Change:

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MBO assumes a stable environment in which the objectives once set will hold good till they are achieved. In reality, however, many unforeseen changes may occur which may render the objective impossible to achieve, or irrelevant, or invalid. In a situation where sudden changes occur frequently MBO is difficult to implement.

Some other problems preventing MBO from achieving its best results are:

i. Pressure-oriented

ii. Time consuming

iii. Increases paperwork

iv. Goal-setting problems

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v. Organizational problems

Suggestions for Improvement of MBO:

1. Organizational commitment

2. Training

3. Adequate time and resources

4. Timely feedback

Planned objectives are necessary if a company is to operate successfully. But this depends upon the individual performance of mangers and their staff. Management by objectives provides a system which identifies the objectives and contribution of individuals with the overall company objectives and performance. To be successful, MBO programs should include commitment and participation in the MBO process at all levels, from top management to the lowest position in the organisation.


Management By Objectives – Advantages and Disadvantages

Advantages of MBO:

MBO calls for regulating the entire process of managing in terms of meaningful specific and variable at different levels of management. MBO is a comprehensive management planning and control technique. It affects the entire organisational structure, culture and style. MBO moulds planning, organising, directing and controlling in a number of ways. It stimulates meaningful action for better performance and higher accomplishment.

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The advantages of MBO are discussed below:

1. Better Planning:

MBO invokes setting of goals and targets through active participation of both superiors and subordinates. Such mutual goal setting improves goal clarity and results in realistic plans to which the people become committed. MBO makes objectives clear and specific and planning is directed towards these objectives.

2. Better Organisation:

When the goals for each individual are reset under MBO there is a considerable change in the job descriptions at various positions. This may call for a revision of the existing organisation structure. The organisation charts and manuals should be suitably amended to depict the changes brought by the introduction of management by objectives. The job descriptions of various jobs must define their objectives, responsibility and authority and the relationship with others, positions in the organisation.

3. Self – Control:

MBO serves as a tool of organisation control. There is a greater sense of identification by the management team with the objectives of the enterprise wherein controls are called as tools of “self-control” rather than device to be used against them.

4. Higher Productivity:

There is a considerable improvement in productivity as management team concentrates on the important task of reducing costs and harnessing opportunities rather than wasting energies on less important matter.

5. Better Appraisal of Performance:

MBO provides an objective measuring instrument for the evaluation of actual performance. The process of defining the expected results establishes accurate criteria for appraisal of performance. Appraisal is result oriented, an individual himself can evaluate the results of his own performance. Clear understanding of responsibilities or criteria of evaluation intensifies accountability. Performance appraisal can be done honestly by MBO.

6. Executive Development:

MBO emphasises long-term and comprehensive view point of the executives. It calls for finding new methods to deal with emerging situations. Thus MBO is a tool of self-development of the executives that is the individual acquiring the knowledge and skills in the job as a by-product of his meeting performance requirements. Opportunities for learning and experimenting naturally help executive development.

Disadvantages of MBO:

1. Resistance to Adopt MBO Technique:

Successful use MBO requires continuous education and training of supervisors and others in its implication. The idea of MBO appears to be simple, but it requires changes in traditional thinking and practices towards specialised functional classification, organisation structure, goal setting, trait-oriented appraisal etc. Above major areas require successful implementation of MBO and real hard work as well as patience on the part of managers. Naturally it is resisted.

2. Poor Planning:

One of the major weaknesses often seen in MBO is poor planning of the programme prior to its implementation. Implementers must be well-trained. They must know how to involve all levels of management and obtain their support.

3. Lack of Training:

The superiors, generally, lack in training, which is required for implementing the programme. Actually the superiors have to sit together with their subordinates to dictate the goals and targets and the time to achieve the same, to decide whether the goals are realistic or not. Proper training is, thus essentially required for both superiors and their subordinates.

4. Limited Application:

MBO technique is not appropriate for all levels and for everyone. It should be adopted only when both managers and subordinates agree and feel comfortable with its application and are willing to participate in it. Managerial and professional employees generally demand for its application.

5. Inflexibility (Rigidity):

MBO technique may tend to introduce rigidity in the organisation. Goals are basically set after every six months or a year. The superiors may not like to modify them in between because of fear of resistance from the subordinates. There may arise a need of revise the goal at lower levels to achieve the long-range objectives of the enterprise. The manager must handle such a situation properly.

6. Expensive Process:

MBO is, costly and time consuming process. MBO requires a great deal of rigorous analysis for which senior executives do not have sufficient time and patience. As well as the setting and evaluation of objectives is done over such a short period that it may not be able to provide for adequate interaction among all people in the organisation.


Management By Objectives – Advantages and Disadvantages

Advantages of MBO:

The following are the advantages that accrue from MBO:

1. Goals step up the motivational levels – If achievable, albeit higher, goals are set in consultation with the subordinates and keeping in mind their strengths and weaknesses, employees get highly motivated to put in their best.

2. Result-oriented management – The management focuses the attention of managers on the results to be achieved rather than on activities.

3. Clarity in organisational structures – Everyone in an organisation knows the purpose and mission of the company and is aware of its objectives. This helps managers to perform better with greater commitment and accountability.

4. Superior subordinate relationships reinforced – Since managers at different levels are consulted and senior managers counsel the juniors, there is greater understanding between them. Communication gaps are eliminated and subordinates develop a sense of involvement which enhances their productivity.

5. Monitoring made easy – It facilitates self-evaluation and feedback which improves the efficiency of managers. There is less need for monitoring from above.

6. Improved planning – Managers at all levels are compelled to think ahead. Interaction among managers results in better ideas and, consequently there will be improved planning and control.

7. More objective appraisal – The element of subjectivity can be minimised. Results not personalities form the basis for appraisals.

8. Self-check – MBO is a tool for self-control and self-direction that helps mangers to turn into professionals. There is no need for any advice or memo to an employee from the top management on whether or not he has completed his targets. He can push himself in areas he lags behind by figuring out the possible correcting measures.

9. Review of objectives – Business environment is very dynamic. There may be changes in it which may call for review and. resetting of objectives, if necessary.

Disadvantages of MBO:

The concept of MBO is so simple that it cannot be clearly understood and put into practice. In other words, the disadvantages of MBO are more due to poor understanding and application of this philosophy.

1. Inadequate Commitment from Top Management:

MBO could not take off in many organisations for want of a clear cut policy from the top management. Though the concept looks simple, it requires a great deal of appreciation and commitment on the part of managers, who implement it. They should explain to their subordinates about its operational details and utility. Otherwise, they cannot win them over and that is vital for the successful implementation of MBO.

2. Goal Setters not Given Any Orientation:

Goal setting is the primary task in MBO. Goal setters should be given a total orientation about corporate goals, planning premises, broad policies of the company and how these, in turn, are likely to affect their own objectives. Any failure to give such guidelines may limit the utility of MBO.

3. Setting Goals is a Complex Process:

Setting realistic and achievable goals for subordinates is not an easy task. If the objectives are not reasonable, behavioural implications are not clearly stated, and ethical behaviour is not given high priority, people will use unethical means to achieve goals.

4. Emphasis on Short-Term Goals:

MBO centres around the accomplishment of mutually set objectives which are more short term in nature. In a majority of the cases, short-term goals are not well integrated into long-term objectives and consequently, undue emphasis on short-term goals marginalises the long- term ones.

5. Inflexibility:

Objectives for every manager or subordinate are set after much interaction, debate, discussion and understanding of individual aspirations. Managers tend to hesitate in changing the objectives worked out in such a detailed effort even when there is a change in corporate goals and planning premises. In other words, the relevance of the objectives should be constantly checked and verified, particularly in a changing environment.

6. Problems of Status and Authority:

MBO focuses on personal interaction among managers. In reality, organisations are characterised more by people conscious of their authority and status. They seldom like to interact freely with their subordinates; leave alone assessing the latter’s strengths and weaknesses.

7. Lower Levels Deprived of Freedom and Interaction:

If the MBO philosophy does not percolate right down, it will not be successful. But managers at lower levels have little freedom to react to even organisational goals, to speak nothing of the freedom to set their own objectives.

Organisational systems such as – hire and fire, carrot and stick continue to regress organisations instead of taking them forward. Senior managers tend to be critical of the awareness, experience, education and knowledge of their subordinates and, thus, always maintain their ‘control’ over the situation. In such an environment setting of objectives is jointly merely a dream.

8. Limited Time Horizon:

MBO may be useful in a limited time horizon. In reality, business environment is not so stable that objectives once set will hold good till they are achieved. Objectives get revised frequently in view of the hostile and volatile business environment.


Management By Objectives – Advantages and Disadvantages

The accomplishment of organizational goals has become a popular phrase of managers. But its effectiveness sometimes, questioned. It is important to analyze its strengths and weaknesses so that managers going through MBO become cautious against its weaknesses.

MBO is being increasingly recognized not merely as a philosophy of management but also as a system which aims at synchronizing the objectives of the individuals with the objectives of the organizations.

Advantages:

MBO has the following advantages:

Advantage # 1. Improvement of Managing:

MBO helps in managing better the organization. It results in greatly improved management. After all, each organization stands for certain objectives, and management efforts are directed towards attainment of these objectives. MBO forces managers to think about planning for results.

To ensure that objectives are realistic, MBO also requires that managers’ think of the way they will accomplish results, the organization and personnel they will need to do so, and the resources and assistance they will require.

They also provide standards of control so that managers can ensure whether they are moving in a right direction or not. MBO leads to an improved communication of a better organization structure. It’s an important means of decentralization of authority.

Advantage # 2. Clarity of Organizational Roles and Structures:

MBO tends offered clarification in organizational roles and structures. To the extent possible, positions should be built around, the key results expected of the people occupying them. Thus, various positions are treated according to the responsibility, authority, and resources at their disposal.

Companies that have effectively embarked as MBO programmes have often discovered deficiencies in their organisation. The process thus, identifies and removes deficiencies in the organization.

Advantage # 3. Encouragement of Personal Commitment:

MBO encourages people to commit themselves to their goals. If the objectives are set jointly by the people who are responsible for achieving them, they have a sense of feeling that they are achieving their own objectives. It provides psychological satisfaction and motivates people to work hard.

They understand their area of operation and they are able to get help from their superiors to ensure that they can accomplish their goals. MBO encourages personal of commitment.

Advantage # 4. Development of Effective Controls:

MBO aids in developing effective controls. Recall that control involves measuring results and taking action to correct deviations from plans to ensure that goals are reached.

MBO, besides providing clarity as to what one is expected to achieve, and also provided the measurement criteria to judge and evaluating results by making the comparison between actual and standards. If required, then corrective action is taken timely. Objectives serve as a device for organizational control by clarifying the contribution of each unit as well as each job.

Advantage # 5. Facilitate Coordination of Efforts:

MBO facilitates coordination of efforts and resources of the enterprise by providing unity of direction. Objectives force managers to think in terms of results. MBO provides a unity of direction where the superiors and subordinates coordinate their efforts for achieving objectives in a planned manner.

Disadvantages:

Management by objectives is a system and there are certain weaknesses inherent in the system which other appears while introducing it. The major problem is reflected in this system that most of the people are unable to implement it effectively.

With all its advantages, a system of MBO’s has a number of disadvantages:

Disadvantage # 1. Difficulty in Setting Quantitative Targets:

MBO is successful if the targets are laid down in measurable terms. If they cannot be set in measurable terms. It is difficult to judge the performance. Thus, it is not possible to implement MBO effectively.

Disadvantage # 2. Emphasis on Short-Run Goals:

Under MBO, goals are set only for a short period. There is clearly a danger of emphasizing the short-range goals, perhaps at the expense of the long-range goals. This means, of course, that superiors must always assure themselves that current objectives, like any other short-run plan, are designed to serve long-range goals.

Disadvantage # 3. Resistance to Change:

An effective MBO system requires for searching changes in traditional thinking and practices. In practice, it is often resisted by both the executives and the operative workers. People resist changes in objectives, because it affects them.

Disadvantage # 4. Failure to Teach the Philosophy of MBO:

MBO seems to be easy, but its philosophy requires much to be understood and appreciated by managers who would put into practice. They must explain to subordinates what it is, how it works, why it is being done, what part it will play in appraising performance, and, above all, how participants can benefit. The philosophy is built around on the concept of self-direction and self- control, which is difficult to attempt.

Disadvantage # 5. Lack of Training:

There is generally lack of training and knowledge on the part of supervisors in implementing the programme. It does not provide for scientific training and development of subordinates before they are involved in the process of MBO.

Disadvantage # 6. Limited Application:

MBO is not appropriate for all levels and for everyone. In practice, managing various operations on the basis of objectives does not provide a unified, comprehensive and total approach to management. It is suitable only for those who feel comfortable and are willing to participate in it.

Disadvantage # 7. Costly Process:

MBO is a costly and time consuming process. MBO requires a lot of time and resources in setting goals jointly. MBO requires a great deal of analysis for which senior executives do not have sufficient time and patience.

Disadvantage # 8. Inflexibility:

MBO may introduce inflexibility in the organization. Once goals are set down, the superior may not likely to modify them due to fear of resistance from the subordinates.


Management By Objectives – Advantages and Disadvantages

Advantages of MBO:

1. Develops Result-Oriented Philosophy:

MBO is a result-oriented philosophy. It does not favor management by crisis. Managers are expected to develop specific individual and group goals, develop appropriate action plans, properly allocate resources and establish control standards.

2. Formulation of Dearer Goals:

Goal-setting is typically an annual feature. MBO produces goals that identify desired/expected results. Goals are made verifiable and measurable which encourage high level of performance. They highlight problem areas and are limited in number.

3. Facilitates Objective Appraisal:

NIBO provides a basis for evaluating a person’s performance since goals are jointly set by superior and subordinates. The individual is given adequate freedom to appraise his own activities.

4. Raises Employee Morale:

Participative decision-making and two-way communication encourage the subordinate to communicate freely and honestly. Participation, clearer goals and improved communication will go a long way in improving morale of employees.

5. Facilitates Effective Planning:

MBO programmes sharpen the planning process in an Organisation. It compels managers to think of planning by results. Developing action plans, providing resources for goal attainment and discussing and removing obstacles demand careful planning.

6. Acts as Motivational Force:

MBO gives an individual or group, opportunity to use imagination and creativity to accomplish the mission. Managers devote time for planning results. Both appraiser and appraise are committed to the same objective.

7. Facilitates Effective Control:

Continuous monitoring is an essential feature of MBO. This is useful for achieving better results. Actual performance can be measured against the standards laid down for measurement of performance and deviations are corrected in time.

8. Facilitates Personal Leadership:

MBO helps individual manager to develop personal leadership and skills useful for efficient management of activities of a business unit. Such a manager enjoys better chances to climb promotional ladder than a non-MBO type.

Disadvantages of MBO:

1. Time-Consuming:

MBO is time-consuming process. Objectives, at all levels of the Organisation, are set carefully after considering pros and cons which consumes lot of time. The superiors are required to hold frequent meetings in order to acquaint subordinates with the new system.

2. Reward-Punishment Approach:

MBO is pressure-oriented programme. It is based on reward-punishment psychology. It tries to indiscriminately force improvement on all employees. At times, it may penalize the people whose performance remains below the goal. This puts mental pressure on staff. Reward is provided only for superior performance.

3. Increases Paper-Work:

MBO programmes introduce ocean of paper-work such as training manuals, newsletters, instruction booklets, questionnaires, performance data and report into the Organisation. Managers need information feedback, in order to know what is exactly going on in the Organisation. The employees are expected to fill in a number of forms thus increasing paper-work. In the words of Howell, MBO effectiveness is inversely related to the number of MBO forms.

4. Creates Organizational Problems:

MBO is far from a panacea for all organizational problems. Often MBO creates more problems than it can solve. An incident of tug-of-war is not uncommon. The subordinates try to set the lowest possible targets and superior the highest. When objectives cannot be restricted in number, it leads to obscure priorities and creates a sense of fear among subordinates.

5. Develops Conflicting Objectives:

Sometimes, an individual’s goal may come in conflict with those of another e.g., marketing manager’s goal for high sales turnover may find no support from the production manager’s goal for production with least cost. Under such circumstances, individuals follow paths that are best in their own interest but which are detrimental to the company.

6. Problem of Co-Ordination:

Considerable difficulties may be encountered while coordinating objectives of the Organisation with those of the individual and the department. Managers may face problems of measuring objectives when the objectives are not clear and realistic.

7. Lacks Durability:

The first few go-around of MBO are motivating. Later it tends to become old hat. The marginal benefits often decrease with each cycle. Moreover, the programme is deceptively simple. New opportunities are lost because individuals adhere too rigidly to established goals.

8. Problems Related to Goal-Setting:

MBO can function successfully provided measurable objectives are jointly set and it is agreed upon by all. Problems arise when- (a) verifiable goals are difficult to set (b) goals are inflexible and rigid (c) goals tend to take precedence over the people who use it (d) greater emphasis on quantifiable and easily measurable results instead of important results and (e) over­emphasis on short-term goals at the cost of long-term goals.

9. Lack of Appreciation:

Lack of appreciation of MBO is observed at different levels of the Organisation. This may be due to the failure of the top management to communicate the philosophy of MBO to entire staff and all departments. Similarly, managers may not delegate adequately to their subordinates or managers may not motivate their subordinates properly. This creates new difficulties in the execution of MBO programme.


Management By Objectives – Advantages and Disadvantages

Advantages of MBO:

(i) MBO focuses the attention of the management on basic question relating to the objectives of the enterprise.

(ii) It helps the management to cope up with the changes in the environment by compelling them to review their objectives against the needs of the environment.

(iii) It helps to fix up definite and quantified objectives from the corporate level to the individual departmental managers.

(iv) It creates a sense of involvement on the part of the subordinates and motivate them to show improved performance.

(v) It provides definite performance standards for a just and meaningful appraisal of the contributions of different departments and is managers.

Disadvantages of MBO:

(i) It is pointed out that MBO approach over-emphasizes quantification and is, therefore likely to overlook the qualitative aspect of the performance.

(ii) The participative process, which is cornerstone of MBO may not be possible in most of the organizations and may be reduced to mere gimmick instead of becoming a fruitful event.

(iii) M.B.O. has been criticized by professionals as – too pressure oriented and time – consuming.


Management By Objectives – Advantages and Disadvantages

Advantages of MBO:

An MBO approach to management provides clear goals and in turn helps in motivating people who are involved in the process.

This approach to management provides the following benefits:

i. Ensures personal commitment to organizational goals;

ii. Provides goal and role clarity in the organization and in turn helps in devising organizational structure conducive for improving efficiency and effectiveness;

iii. Ensures result-oriented planning;

iv. Develops effective control mechanism leading to timely corrective actions;

v. Less supervision of subordinates and increased motivational level as a result of each employee’s clear definition of responsibilities;

vi. Increase in employees’ accountability; and

vii. Improves managerial effectiveness and efficiency resulting in greater satisfaction level to the employees.

Disadvantages of MBO:

The MBO approach to management can fail if the managers, particularly at the top level, lack the conviction and commitment in its implementation. Shortcomings in its implementation lead to lack of achievement.

Some of the commonly found weaknesses in implementation of MBO are as:

i. Failure to teach the philosophy of MBO across the organization;

ii. Lack of guidelines to goal setters;

iii. Difficulty in setting verifiable objectives;

iv. Over-emphasis on short-term achievements at the cost of long-term growth and development;

v. Lack of flexibility to attune changes with changing environmental forces;

vi. Over-emphasis on quantitative goals, even where it may not be applicable;

vii. It turns out to be paper passing buck, especially in organizations wherein well set mechanisms to monitor and evaluate the performance does get laid down; and

viii. It is time consuming to imbibe the philosophy of MBO in the organization.


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