Why does MBO become Ineffective?
Management by Objectives that also called as MBO is a kind of management system that focuses on the defining measurable and attainable goals that set by the managers and employees by considering the general objectives of the company or organization and resources available. It was first stated by Peter Drucker in 1954 in his book ‘The Practice of Management’. This theory includes setting goals, defining how will organizations execute the plan, monitoring the works, and evaluate the results. Management by Objectives is used as the measurement of the results and also as a guide to operate the unit and asses the contributions of each of its members. The main principle of MBO is to make sure that everybody within the organization has a clear understanding about the goals and considers about the role that each member hold. All layers of an organization are involved in these activities, and employees are not the exception. If the employees join the decision making process till the evaluation of their works, they will more likely to be responsible to enforce their duties.
Despite the fact that it is an appealing theory of management, MBO has plenty of limitations and disadvantages. The process can be bureaucratic and time-consuming. Managers and employees spending hours in the meeting and the results or the defining goals might be unrealistic, which can lead to the ineffectiveness and inefficiency because the organization has to make sure that all staff are in the same page and share the same idea. Moreover, setting plans and goals does not guarantee that it will be achieved. Sometimes, there is no balance between the managers and employees. They agreed to adapt the MBO system but then the manager somehow unwilling to delegate fully to their subordinates. It can be one of the problems of executing the movements.
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