Conducting periodic reviews as subordinates are working toward their goals is advisable.
At the end of the period, the manager meets with each subordinate to review the degree of goal attainment. The reasons for both success and failure are explored. The employee is rewarded on the basis of goal attainment .
The major reason for MBO failure is lack of top management support after deciding using it, its implementation is delegated to lower management goals and plans cascading throughout the organization may not be those of top management.
Some firms may overemphasize quantitative goals and burden their systems with too much paper work and record keeping.
Some managers will not or cannot sit down and work out goals with their subordinates they “assign” or “suggest” goals and plans to their people resentment and lack of commitment to the MBO program .
MBO well articulated objectives clarity of purpose, but also a certain rigidity organization must be flexible to survive more fluid and yielding objectives loss of clarity.
02/03/11 LAU - HRI / The Second HR Workshop
02/03/11 LAU - HRI / The Second HR Workshop MBO Benefits and Problems Benefits of MBO Problems with MBO 1. Manager and employee efforts are focused on activities that will lead to goal attainment. 2. Performance can be improved at all company levels. 3. Employees are motivated 4. Departmental and individual goals are aligned with company goals. 1. Constant change prevents MBO from taking hold. 2. An environment of poor employer-employee relations reduces MBO effectiveness. 3. Strategic goals may be displaced by operational goals. 4. Mechanistic organizations and values that discourage participation can harm the MBO process. 5. Too much paperwork saps MBO energy.