Disadvantage of Management by Objectives in Business
Disadvantage of Management by Objectives or Weaknesses of MBO : A system of Management by Objectives has sure weaknesses and limitations. A number of this is inherent within the system whereas some arise once introducing and implementing it. A number of the issues and limitations related to management by objectives are as explained below- Business Management
Disadvantage of Management by Objectives
Emphasis on Short Term Goals: below management by objectives goals are set just for a brief period, say for 6 months or one year. This is often due to the explanation that goals being quantitative in nature, it’s troublesome to try to long vary planning. Since the performance of the subordinate is just too reviewed when each six months or one year, they have an inclination to target their immediate objectives while not caring for the long vary objectives of the enterprise. This stress on short term goals goes against the structure potency and effectiveness and isn’t a healthy sign.
Emphasis on Short Term Goals: below Management by Objectives goals are set just for a brief period, say for 6 months or one year. This can be as a result of the explanation that goals being quantitative in nature, it’s difficult to try and do long range planning. Since the performance of the subordinate is to be reviews when each six months or one year, they have a tendency to think about their immediate objectives while not caring for the long vary objectives of the enterprise. This stress on short term goes against the organizational potency and effectiveness and isn’t a healthy sign.
Costly and Time overwhelming method: Management by Objectives is sort of expensive and a time overwhelming process. There’s lots of paper work concerned. Moreover, there are lots of conferences and too several reports to be ready. That increases the responsibilities and burden of the managers? As a result of these reasons managers usually resist the Management by Objectives.
Lack of Adequate Skills and Training: Most of the managers lack adequate skills, information and training needed in social interaction that is needed within the MBO. Several managers tend to sit down with the subordinate, dictate the goals and targets with no input allowable from the subordinates then demand that the goals be achieved in a very such time. Whether or not the goals are realistic or not doesn’t enter the image. During this kind of environment, 2 method communications isn’t there and objectives are obligatory on the subordinates. This destroys their morale, initiative and performance.
Difficulty of Setting Goals: actually verifiable goals are tough to set; significantly they’re to possess the proper degree of stretch and pull, quarter in and quarter out, year in and year out. Goal setting might not be far tougher than the other reasonably effective planning, though it’ll most likely take a lot of study and work to ascertain verifiable objectives.
Failure to convey pointers to Goal Setters: MBO like every alternative kind of planning cannot work if those that are expected to line goals aren’t given required tips. Managers should recognize what the company goals are and the way their own activities fit in whit them.
Failure to teach the Philosophy of Management by Objective: As management by objectives could appear, managers who would place into observe should understand and appreciate a good deal regarding it. They, in turn, should inform subordinates what it’s, however it work, why it’s being done, what half it’ll play in evaluative performance and in particular, however participants will benefit.
Lack of Support of high Management: In traditional organizations, the authority is unconditional within the high management and it ensues high to bottom. In Management by Objectives, subordinates are given an equal opportunity of participation, which is resented by the highest management. this method cannot succeed while not the total support of high management. There is more information about Nature of Planning in Management Business.