- It is time-consuming
- Approach is reward–punishment oriented
- Increases paperwork and requires considerable effort
- Problems of coordination
- Difficulty in setting specific goals at times
- Lack of trained managers in MBO
- Pressure and stress oriented
- Lack of flexibility due to rigid goal setting
Why Organizations Fail in MBO Implementation?
One major reason for failure of MBO in many organizations is poor implementation.
The fault lies not in the system itself but in its improper use.
How to Succeed in MBO?
The following suggestions help in effective use of MBO programs:
- Enhance commitment levels among staff
- Focus on training and development
- Allocate adequate time and resources
- Provide timely feedback and realign plans accordingly
- Avoid organizational politics