Management By Objectives (MBO) - Disadvantages of MBO | 12th Commerce : Chapter 3 : Management Process : Management By Objectives (MBO) Management By Exception (MBE)

Chapter: 12th Commerce : Chapter 3 : Management Process : Management By Objectives (MBO) Management By Exception (MBE)

Disadvantages of MBO

The disadvantages of MBO arise due to the application of the MBO which are discussed below:

Disadvantages of MBO

The disadvantages of MBO arise due to the application of the MBO which are discussed below:

1. MBO fails to explain the philosophy; most of the executives do not know how MBO works? what is MBO? and why is MBO necessary? and how participants can benefit by MBO?

2. MBO is a time consuming process. Much time is needed by senior people for framing the MBO. Next,it leads to heavy expenditure and also requires heavy paper work.

3. MBO emphasises only on short-term objectives and does not consider the long-term objectives.

4. The status of subordinates is necessary for proper objectives setting. But, this is not possible in the process of MBO.

5. MBO is rigid one. Objectives should be changed according to the changed circumstances, external or internal. If it is not done, the planned results cannot be obtained.

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12th Commerce : Chapter 3 : Management Process : Management By Objectives (MBO) Management By Exception (MBE) : Disadvantages of MBO | Management By Objectives (MBO)