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CMA Foundation · Fundamentals of Business Economics and Management · Planning, Organizing, Staffing and Leading

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

A recognised limitation of MBO is that it can overemphasise short-term, quantifiable targets while neglecting qualitative and long-term aspects. The approach actually encourages measurable objectives, participation and planning, so the other statements describe features it does not have.

  1. AIt makes objectives unmeasurable
  2. BIt may overemphasise short-term quantifiable targets at the cost of qualitative aspectsCorrect
  3. CIt prevents subordinates from participating
  4. DIt removes the need for planning

Explanation

MBO stresses measurable results, so it can neglect qualitative factors such as quality of relationships and long-term development. It actually promotes measurable objectives and participation, and it is itself a planning tool, so the other statements are wrong.

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