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CSEET · Business Laws and Management · Introduction to Management

Which of the following is a recognised limitation of Management by Objectives?

A recognised limitation of MBO is that it may overemphasise quantifiable, short-term goals and neglect qualitative or long-term aspects of performance. It also consumes time in setting objectives, but it does encourage participation and is commonly used for appraisal.

  1. AIt always reduces employee motivation
  2. BIt cannot be used for performance appraisal
  3. CIt may overemphasise quantifiable short-term goals and neglect qualitative aspectsCorrect
  4. DIt prohibits participation of subordinates

Explanation

MBO tends to focus on measurable results, so qualitative aspects and long-term goals may be ignored, and setting objectives can be time-consuming. Options A, B and D are wrong because MBO usually motivates, is used for appraisal, and encourages participation.

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