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ACCA Applied Knowledge · Business and Technology · Review and appraisal of individual performance

An organisation uses management by objectives (MBO) for appraisal. Which of the following is a recognised weakness of this approach?

A recognised weakness of MBO is that it concentrates on measurable outputs, so behaviours, teamwork and the manner in which results are achieved may be neglected. It does involve employees in goal setting and links to organisational goals, and results are its central focus.

  1. AIt ignores the employee's results entirely
  2. BIt prevents employees taking part in setting goals
  3. CIt can overemphasise measurable outputs and neglect behaviours and how results are achievedCorrect
  4. DIt cannot be linked to organisational goals

Explanation

MBO focuses on agreed, measurable objectives, so qualitative aspects such as teamwork and the way results are achieved may be overlooked. Employees do participate in goal setting, results are central, and objectives are normally cascaded from organisational goals.

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